Thursday, July 3, 2014
THE POLITICS AND ECONOMICS OF INEQUALITY: A LECTURE TO THE TOP ONE-TENTH OF 1 PERCENT
Here’s the Aspen Lecture I gave recently at this year’s Aspen Ideas Festival. The irony of talking about inequality with an audience composed almost entirely of the richest one-tenth of 1 percent of Americans was not lost on me. When I suggested that we return to the 70 percent income-tax rate on top incomes that prevailed before 1981, many looked as if I had punched them in the gut.
But I stressed it’s not a zero-sum game, and they’d do better with a smaller share of a rapidly-growing economy – growing because the vast middle class and the poor had the purchasing power to get the economy back on track – than they’re doing with a large share of an economy that’s barely growing at all.
It’s crucial that America’s most powerful and privileged understand what’s happening, and why they must support fundamental reform.