Punishing The 1% Isn't Going To Fix Inequality

It is amazing how the “one per cent” epithet, a reference to the top 1% of earners, has caught on in the United States and elsewhere in the developed world.

In the United States, this 1% includes all those with a 2006 household income of at least $386,000.

In the popular narrative, the 1% is thickly populated with unscrupulous corporate titans, greedy bankers, and insider-trading hedge-fund managers.

Reading some progressive economists, it might seem that the answer to all of America’s current problems is to tax the 1% and redistribute to everyone else.

Of course, underlying this narrative is the view that this income is ill-gotten, made possible by Bush-era tax cuts, the broken corporate governance system, and the conflict-of-interest-ridden financial system.

The 1% are not people who have earned money the hard way by making real things, so there is no harm in taking it away from them.

Keep reading this post at Project Syndicate→
This post originally appeared at Project Syndicate.

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