Maybe The Earnings Gap Isn't Such A Bad Thing

Income inequality grew substantially during the Reagan and Bush Presidencies, yet the midterm elections suggest voters did not hold this against the Republican Party. The reason may be because they realize that the increase in inequality is related to economic growth. When greater inequality is due to higher rates of return on human capital and other investments in knowledge, it can be an engine that drives an economy toward more rapid economic growth.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.