Income Inequality: Too Big to Ignore

Widening income gaps erode a society’s strength, sapping optimism and innovation. In recent decades, the US joined the ranks of less developed nations as income growth is concentrated among top earners. Political economists hesitate to condemn opposition to taxes that contributes to the trend. Exorbitant spending by a wealthy few establishes new expectations and standards of one’s need, raising debt and angst. The squeezed society neglects infrastructure investments. Throughout the US, counties with the highest income inequality have higher rates of divorce, bankruptcy and squandered talent. Economists must tackle the moral aspects of wage inequality, urges Cornell economics professor Robert Frank in a New York Times essay. Economists shun pronouncing on inequality, calling it a philiosophical question, but the field of economics was born from moral philosophy; Adam Smith was a professor of moral philosophy. Relying on traditional economic analysis, Frank concludes that income inequality is a major challenge, imposing great costs and few tangible benefits. – YaleGlobal