Could it be that income inequality is not solely the result of free markets? Andy makes the case that the root cause lies with the "Four Progressive Horsemen of Inequality," public schools, occupational licensing, land-use restrictions, and welfare disincentives. In addition, the following article discredits the current measurement of income inequality. If you correct the current measurement of income inequality, we are actually at a 50 year low!
I too have felt like Andy Kessler in the first article when discussing the benefits of free market economies. Just think for a minute of all the benefits technology has brought us over the past 20 years. Yes, some individuals have become rich beyond measure, but this technology allowed us to stay home during the pandemic, yet still get everything we needed delivered (usually next day!!). I've also joked that if Amazon were in charge of vaccine distribution, we'd all be vaccinated by now. Right?? Instead of looking at the benefits of free markets, we get mired in the income inequality abyss. It's just not "fair" that there are so few "haves" and so many "have nots." My natural statement is always "show me another economic system which is more fair." Invariably, Canada, France, Sweden are lauded as shining examples of "fairer" systems. I think "fair" is in the eye of the beholder. My definition of "fair": equal opportunity in pursuing our dreams. Although not there yet, I'd choose the USA and free markets any day!
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