This fits out subject matter in 2305 today.
An NYT Op-Ed argues that disparities in wealth creates a variety of problems in society and that wealth - not income - ought to be taxed:
When economists try to measure inequality, they typically focus on income, because the data are most readily accessible. But income is not always a good gauge of economic power. Consider a group of people who all have high incomes but differ widely in their wealth. Who’s going to get into the country club? Who’s going to have the money to finance a new venture? Moreover, income data may not reveal the true economic power of people who are retired, or who receive their pay in securities like stocks and options or use complex strategies to avoid taxes.
An NYT Op-Ed argues that disparities in wealth creates a variety of problems in society and that wealth - not income - ought to be taxed:
When economists try to measure inequality, they typically focus on income, because the data are most readily accessible. But income is not always a good gauge of economic power. Consider a group of people who all have high incomes but differ widely in their wealth. Who’s going to get into the country club? Who’s going to have the money to finance a new venture? Moreover, income data may not reveal the true economic power of people who are retired, or who receive their pay in securities like stocks and options or use complex strategies to avoid taxes.
Trends in the distribution of wealth can look very different from trends
in incomes, because wealth is a measure of accumulated assets, not a
flow over time. High earners add much more to their wealth every year
than low earners. Over time, wealth inequality rises even as income
inequality stays the same, and wealth inequality eventually becomes much
more severe.
This is exactly what happened in the United States. Paul Krugman looks at the increased acceptance of economic inequality.
