The Myth of Economic Inequality
Richer rich people aren't hurting anyone, experts say even if it can be tougher to join them
The gap between the rich and the poor is growing in
The evidence that growing inequality hurts the middle class and poor is weak, as
Without question, income inequality has grown substantially in
As an example, Winship pointed to
"How will the typical American end up better off if the Facebook IPO were to fall through so that Zuckerberg could not exercise his options?" said Winship in his opening statement.
While the problems of inequality can be deceptive and perhaps overstated, growing income disparities can point to larger economic problems. For example, the CBO has cited a lack of skilled labor as one contributing factor to inequality, as demand and pay grow for rare skilled workers. Better education, particularly in STEM fields, could mean a better chance at a better life for many.
Likewise, while income gaps continue to grow, economic mobility -- the ability to move up (or down) the income ladder -- is very limited.
Even while a vast majority of Americans are earning more than their parents did, many Americans find it difficult to move from their places on the economic ladder, says
In part, this is again a question of education; the cost of higher education has increased faster than median family income in recent decades. Postsecondary education, says Currier, quadruples the chances that a child born in the bottom fifth of the population will make it to the top fifth.
Some inequality is good, as Winship told the committee members.
"In a world of perfect equality, there would be no rewards for hard work or risk," he said. The worry may instead be that those rewards are diminishing.
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The Myth of Economic Inequality | Politics
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