The problem is not that there are extremes in income. The problem is that there is no one in the middle! There will always be the uber rich and unfortunately the low end of the income/wealth spectrum. Our problem is that we have been allowing the vast middle class-lower thru upper middle class, the ladder out of poverty- to disappear! For all of our sakes we need to identify the problem properly if we are going to have any chance to solve it......
Income inequality in this country is a direct result of Globalization and the failure of our political leaders to prevent the trade mercantilism practiced for over 40 years by our so called 'trading partners'. This failure has resulted in the destruction of our middle class jobs by allowing non-competitive forces to control global trade and move to extremes....all in the name of global economic growth. Don't misunderstand, global growth is very important and raising the standard of living of people everywhere is a good thing. The problem comes from letting it be hijacked by rules breaking, mercantilist trade practiced by first Japan, then Korea, and for the last 20 years China. The rapid pace of economic growth, allowed by these practices comes to the massive detriment of the USA, NOT to our betterment. Global growth of a more moderate pace would have allowed for a more balanced global trade system and less severity in job losses and the destruction of our middle class. The policies that first negotiated bad trade agreements, then the refusal to hold countries accountable for even these one sided trade agreements, allowed trade mercantilists to completely undermine the principle of Free Trade!
All the other discussions, such as this one by the 'Esteemed' Professor, are insignificant or completely bad rationalizations of what caused the destruction of our jobs creation engine and our middle class.
Unfortunately he is in the majority in identifying the problem/solution incorrectly- just read all the comments on the article-and why we are where we are!
America Wake-Up and become Champions! Let's do it Together,