Even after winning the Nobel Prize, the elite economists continue to compete. In this piece, Joe Stiglitz makes his case for why he is our best liberal scholar. We will see if Paul Krugman can match this by publishing a better piece in Vogue or perhaps Elle. I have published in Reader’s Digest but that’s a story for another day.
If you click on the Stiglitz piece, you will learn that Rob Lowe has an old tattoo and you will learn the troubling fact (unless you are one of them) that the top 1% of the U.S own 40% of the nation’s wealth. So Dr. Stiglitz’s point is that the remaining 99% should be grateful for their 60% share. (I’m kidding).
There is only one viable strategy for reducing income inequality and this is investing in children’s skill formation. I would favor financing such investments through taxes on the top 5% of the income distribution (and I believe that would include my two worker household). What would these “investments” be? Another Nobel Laureate named James Heckman offers a promising vision via his Heckman Equation.