Financial inequality is rising in the United States, but most of the rise is at the top of the distribution. It is not a ‘rich-poor’ gap opening up, but a ‘rich-everyone else’ gap. The top are pulling away from the rest, and the very top are pulling away even faster. A while back, Scott Winship used Dubai's Burj Khalifa as an illustration for top-driven income inequality, showing by comparison to Mark Zuckerberg even Mitt Romney might start to feel hard-up.
While the current generation of wealthy are more likely to be self-made than heirs, this may not be true for the generation to follow. As the baby boomers – including the really wealthy ones - start to die off, the patterns of wealth inequality that have emerged in their generation may strongly influence economic inequality and opportunity in the next. Tax policy could help to disrupt these inherited inequalities, but given the response to President Obama’s budget, I wouldn’t hold your breath.
Financial inequality is rising in the United States, but most of the rise is at the top of the distribution. It is not a ‘rich-poor’ gap opening up, but a ‘rich-everyone else’ gap. The top are pulling away from the rest, and the very top are pulling away even faster. A while back, Scott Winship used Dubai's Burj Khalifa as an illustration for top-driven income inequality, showing by comparison to Mark Zuckerberg even Mitt Romney might start to feel hard-up.While the current generation of wealthy are more likely to be self-made than heirs, this may not be true for the generation to follow. As the baby boomers – including the really wealthy ones - start to die off, the patterns of wealth inequality that have emerged in their generation may strongly influence economic inequality and opportunity in the next. Tax policy could help to disrupt these inherited inequalities, but given the response to President Obama’s budget, I wouldn’t hold your breath.
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