Income inequality is a hot topic. Presidential candidates go on about it. Studies are published. Programs (great, another program) are proposed. Being such a hot topic means nothing really meaningful will be done, I have little confidence in our government.
First, the wealth index, meaning the net worth of individuals, has become more even since the 1920’s. Wealth was much more concentrated then than now, home ownership-401K’s, IRA’s, savings, etc.
Income disparity has increased, rising close to its’ highs of the early 20th century; and the U.S. is higher than most of the OCED members. So what to do?
Jobs. Create more jobs.
Jobs. The U.S. has been slipping down the scale over the last couple of decades in the ranking of places easiest to business in. Regulations being the biggest cause, business taxes the next, higher government support when out of work, higher minimum wages, and so on. Sooooo, fix those problems, Duhhhhh! Our labor force participation is at all time lows, people have stopped looking for work. Smaller companies create the new jobs, not the big companies.
Educate our folks, old and young to compete in the global marketplace.
Education. Pay teachers on whether their students improve knowledge and skills. Reduce top heavy bureaucracies. Ensure kids have supportive parents. Stop talking about college for everyone-we need high skill tradespeople w ho on average make more than college graduates.
This is an easy problem, but both sides are unwilling to compromise to change the direction of our policies.