Blog Post
How government promotes income inequality
AEIdeas
December 21, 2011
To the extent rising incomes on Wall Street have contributed to the rise of U.S. income inequality, government played a big role by encouraging risk via a de facto policy of Too Big To Fail. A few words on this topic from Milton Friedman via “Capitalism and Freedom”:
A good education system can serve to greatly reduce the likelihood of income inequalities. Unfortunately, our public schools are not only failing to teach students the basic skills of mathematics and communications, but colleges and universities lean towards an anti-market agenda.
Well educated, resourceful people are the best way to minimize extreme income inequalities. If society is basically healthy, extremely wealthy individuals deserve our thanks for their accomplishments, inventions, job creations and services.