America’s income inequality

Even ‘The Economist’ is saying it:

“America’s income inequality is growing again. Time to cut subsidies to the rich and invest in the young.”

“Although some degree of inequality is good for an economy, …the recent concentration of income gains among the most affluent is both politically dangerous and economically damaging. (The implicit subsidy provided to banks that governments judge too big to fail allows bankers to overpay themselves.)”

“A highly skewed distribution can lower growth, if it translates into less equality of opportunity for the next generation.”

“The attack on favours for the wealthy ought to start with the budget. America’s tax code is riddled with distortions that favour the rich… Investment in the young should focus on early education. America … ranks only 28th out of 38 leading economies in the proportion of four-year-olds in education.”

Source: 21 September 2013, The economist: “Growing Apart”

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