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Obama Has Misdiagnosed America's Income Inequality Problem

The answer isn't more government, but restoration of a free market

December 20, 2011 RSS Feed Print

[See an opinion slide show of 10 wasteful stimulus projects.]

If the economy were allowed to function organically, there would be little reason for people to waste resources on "high-priced lobbyists and unlimited campaign contributions." There would be nothing for them to buy, no matter how much money at their disposal. Wealth would cease to give an unfair political advantage to those who possess it, and inequality would once again be a function of work ethic and ability alone.

It is only by intervening to choose winners and losers—by trying to substitute the judgment of the few in positions of power for the judgment of the many in an open marketplace—that a government cedes influence to those with the most to spend.

A more active state is not a solution to the problem of increased inequality; rather, increasing inequality is a side effect of our activist state. If we as a society are concerned about a situation where the rich get richer while the poor stay poor, we need only demand that our government stop handing out favors, and then watch as special interests, and the inequalities they effect, fade away into things of the past.

Tags:
economy,
Obama administration

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The wealthy will ALWAYS exist regardless of any political complacement anywhere on this globe. In our USA, I understand the IRS is trying to investigate the Swiss bank accounts of the elite

....good luck with that!

The OWS has all but died (...as easily as this very large joke was anticipated).

Simply stated, the "Golden Rule", as in, "He who has the gold, makes the rules", will always hold true

....and there isn't thing one anybody can do about it!

John Nottalottabucks of MN 9:02AM January 12, 2012

This may sound like a lovely plan but the actual data points to a different trend: that free market reforms increase income inequality, while constructive institutions that accommodate functioning economies alleviate it. This trend is verified by time series Gini index measures in western nations, later in East Asia, and is reemerging with the BRIC. Almost all developmental economists are aware of this, and it's about time op-ed authors in well-distributed online publications became so as well.

C L of CA 7:13PM January 11, 2012

I remember when this notion began to occur to me. What I didn't realize was the fact that I was in the process of becoming a small government Republican.

E J Burns of 2:57AM December 31, 2011

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