Sunday, October 17, 2010

Inequality, again

Nice op-ed by Robert Frank, stating the obvious which is seemingly non-obvious to many - article here. Bizarrely, substantial numbers of voters are still opposed to tax increases at the top in the US. Why? Well, they may buy the line that this will reduce incentives and make everyone worse off (economic ideology). Or they may think one day they too will be rich (false consciousness). Or they may simply not know the facts about where all the money is going, and how the super-rich are contributing less and less. Or they may think 'tax cut - yey' and happily accept the crumbs while ignoring the cake ('Homer Simpson gets a tax cut' in Larry Bartels' neat metaphor).
Either way, free market capitalism and the concentration of power around a narrow elite is looking pretty healthy considering what's been happening in the last 3 years.