One of the hottest topics of the day is economic inequality, as we’ve seen the gap between the rich and the poor grow wider and upward mobility decline. Obama has called this inequality “the defining challenge of our time,” and is quick put the blame on too-low taxes for the wealthy, a too-low minimum wage, and not enough federal funding–all of which he, in turn, blames on business. This is despite the fact that income inequality grew more under his administration than under Bush 41, or Clinton, or Bush 43.
To get a better sense of what’s really going on, watch this short video at the Wall Street Journal website that highlights some common misconceptions about income inequality. The video features Edward Conrad, author of Unintended Consequences, responding to 3 myths:
1. The success of the 1% has come at the expense of the middle class
2. At best, the success of the 1% only benefits the 1%
3. The widening distribution of income has reduced upward mobility