Monday, February 17, 2014

Larry Summers Favors Tax Policies To Deal With Income Inequality

Larry Summers points to all of the evidence about growing income inequality and he does not see much point in policies that would keep the rich from getting richer.  He argues that the super rich also game the tax system.  He believes that we should put an end to the ways in which the super rich avoid taxes.  We could use the additional tax revenue to redistribute benefits to those in need.  He suggests that a failure to rebalance after tax income would lead us in the direction of the Downtown Abby economy which has captivated TV audiences in the US.  It provides a picture of the aristocratic society in England prior to the first world war.  It was a society in which inherited wealth and privilege was the dominant force.  Everyone knew their place in that society but changes were underway which were nipping at the edges.

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