Inequality debate of 2006
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The Inequality Debate is a discussion of economists on the topic of changes in income inequality as a result of government policies. The debate was started by an op-ed column in the New York Times by Princeton economist Paul Krugman [1] and has since then been conducted in the blogosphere by other economists.
[edit] Krugman's argument
Krugman denies the argument by United States Secretary of the Treasury Henry Paulson that "rising inequality is mainly a story about rising wages for the highly educated", that "nothing can be done about this trend" and that “it is simply an economic reality, and it is neither fair nor useful to blame any political party.”
Krugman analyzes the historical chronology of changes in inequality in the 20th century. It leads him to conclude that "it seems likely that government policies have played a big role in America’s growing economic polarization" and that "it matters a lot which party is in power — and more important, which ideology."
[edit] Criticism
Economist Andrew Samwick points out that Krugman's personal success puts him in the top 1% and is itself an argument for the importance of education and skills for income. [2]
[edit] References
[edit] See also
[edit] External links
- For Richer by Paul Krugman older article, published in New York Times, 10.20.02
- extensive debate discussion by Brad DeLong
