From Charles Blow writing in the New York Times:
There are some who suggest that the solution to this inequality problem — if indeed they concede that it is a problem — is simply to grow the economy.
A February I.M.F. paper pointed out the folly of such a tactic: “It would still be a mistake to focus on growth and let inequality take care of itself, not only because inequality may be ethically undesirable but also because the resulting growth may be low and unsustainable.”
Furthermore, as the I.M.F. pointed out in its January paper, inequality could, in fact, be an impediment to growth: “There is growing evidence that high income inequality can be detrimental to achieving macroeconomic stability and growth.”
A December survey of several dozen economists by The Associated Press found that most believe that growing income inequality is hurting our economy.
We can’t grow our way out of this obscenity. It’s a barrier to growth. We must forthrightly address the issue with policy prescriptions. The I.M.F.’s list includes things like means-testing benefit programs, improving access to higher education and health care for the less well off, and “implementing progressive personal income tax rate structures” while “reducing regressive tax exemptions.”
Surely we can figure out how to fix this. We just don’t have the political will to do so.
