Economics

Cronyism Causes the Worst Kind of Inequality

Growth falls and the wealth gap widens.

Mind the gap.

Source: Fox Photos/Getty Images

Economic inequality has skyrocketed in the U.S. during the past few decades. That has prompted many calls for government policies to reverse that trend. Defenders of the status quo argue that rising inequality is a necessary byproduct of economic growth -- if we don’t allow people the chance to become extremely rich, the thinking goes, they will stop working, investing, saving and starting businesses. A receding tide will then cause all boats to sink. 

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