“Life in Lithuania is Getting Better, even if Not Everyone Feels It”: The Narrative of Progress in Lithuanian Economists Discourse on Income Inequality and Social Welfare

The political and economic landscape of Lithuania is characterized by significant influence from private banks, an oligopolistic banking sector, a neo-conservative political atmosphere, and a lack of progressive taxation, despite having one of the highest growing income inequalities in Europe. The research aims to understand how the chief economists from the leading Lithuanian private banks - Nerijus Mačiulis (“Swedbank”), Žygimantas Mauricas (“Luminor”), and Tadas Povilauskas (“SEB”) - construct their discourse on income inequality and social welfare. This study is grounded in E.P. Berman's “Thinking Like an Economist: How Efficiency Replaced Equality in U.S. Public Policy” (2022) and A. Hirschman's “The Rhetoric of Reaction: Perversity, Futility, Jeopardy” (1991). The research method involves a thematic and critical discourse analysis of statements published in major Lithuanian news portals. The results indicate that Berman’s theory is inapplicable in this context but is useful for highlighting the relevance of Hirschman’s theory. Instead of political ideas being translated into economic arguments, the reverse is observed: economic principles are transformed into mostly neo-conservative moral, social, and political lessons. Economists enhance their authority within Lithuanian public discourse, by assuming roles as guides to progress and moral experts. As a key tool for minimizing the perceived need for social welfare and downplaying income inequality the narrative of “Progress and Good News” emerges. This narrative shifts the focus to increasing opportunities, framing personal unproductiveness as a major issue, and portraying progress as the primary objective. Consequently, income inequality is also framed as a personal issue. Economists create a discourse, in which, distinguished from morally invaluable, unproductive, and undesirable members, only productive-type members are desired. Moreover, the phenomenon of progress is often presented as beneficial for all, while implicitly defending the interests of businesses and investors.