How the Wealthy Keep Themselves on Top

Inequality is pronounced and widening, particularly in the United States and the United Kingdom, but also Australia and Canada. People tend to care more about inequality during times of economic crisis, suggests Tim Harford. “The uncomfortable truth is that market forces – that is, the result of freely agreed contracts – are probably behind much of the rise in inequality,” he writes for the Financial Times. “Globalisation and technological change favour the highly skilled.” He points out that harmful outcomes and processes can feed off each other: “[P]lutocrats can shape the conversation by buying up newspapers and television channels or funding political campaigns.” Corruption, fraud, hoarding or old habits can concentrate wealth and contribute to dysfunctional democracy and financial instability. He concludes that the free-market system no longer guarantees that anyone in society can reach his or her full potential as individuals. Societies may be more fiercely competitive and less focused on the common good. – YaleGlobal