Tuesday, 15 April 2014

Higher taxes no solution for Income Inequality

Robert Shiller is too much focused on the simple expedient of higher taxes for the rich (however defined) as a tool to stop rising inequality. It may well paper over the underlying malaise but does little to change the reasons behind the increase in differences between income (and even more importantly, wealth) disparities in the USA and many other countries. Only a thorough review of policies concerning the way the capitalist system works (ownership of productive assets, capital gains and inheritance taxes, intellectual property rights, educational policies to name just a few) will lead to a substantial reduction in inequality.