Saturday, September 19, 2009

Spiralling round the black hole of inequality

"Economist's View" argues that the Gini Index will go on rising until someone positively stops it:

Once income concentration becomes a reinforcing cycle of the kind we are witnessing, it is never stopped by pure market forces. Only extensive government intervention, of the kind that will inevitably create high controversy, reverses this trend.

Read the rest of Mark Thoma's piece here.

1 comment:

Paddington said...

In the US, the rich have done a wonderful job of convincing many people that taxing them (the rich) is inherently unfair. There are actually protests, letters to the editor and too many talk show callers who make the claim that dumping on the less fortunate is the way to make America great again.