Everything You Need to Know About Income Inequality

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The Big Picture has compiled a lot of data and comments on the problems of growing income inequality. Some might be surprised to learn that income inequality impacts economic growth. It also affects the duration of growth. Growth spurts are shorter in periods of high inequality. The spurts are often financed by debt. Some may also be surprised to learn that government policies contribute to inequality. Tax policy has been made less progressive over the last 30 years which increases after tax income inequality. Monetary policy during the financial crisis also increased inequality. Lower interest rates helped to increase stock prices and almost all of the stock is owned by the those in the top income brackets. Income inequality also has a negative affect on the democratic process. Wealth concentration is related to power concentration. The more it costs to run a political campaign the greater the dependence of candidates on financial contributions from the super rich. The super rich also influence public opinion by ownership of the media and by funding "think tanks" which produce information that supports their goals. The denial of global warming is a good example. Energy companies funded much of the research that countered the bulk of scientific evidence coming from independent scientists. In any case, this is a good compendium of information and analysis. Unfortunately, few will have access to this information. The media do a better job of keeping the public informed about the life of celebrities and the latest sex scandals.