Joseph Stiglitz: Thomas Piketty gets income inequality wrong
The famed economist reveals the real reason the rich are getting richer — and what it means for the rest of us
LP: How can we prevent inequality from getting worse? I divide it into two parts: what can we do to reduce inequality of before-tax and transfers income, and what can we do to improve the after-tax and transfers income. The first part is things like higher minimum wages, stronger unions, better education, and stronger enforcement of anti-trust laws and corporate governance laws. Those are the kinds of things that are likely to improve the before-tax and transfers income. The second part is addressing things like capital gains taxes, the preferential treatment that mainly benefits people at the very top, and better redistributive policies. Those would help the after-tax and transfers income become more equal. Read full article.
