Sunday, January 12, 2014

Perry on Income Inequality

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From the article:

Many Americans express great concern about income inequality in the United States, but seem relatively unconcerned about global income inequality. For example, nearly half of the world’s richest 1% of people live in the U.S., and the threshold required to make it into that elite group is only $34,000 per person, according to World Bank economist Branko Milanovic.  Is it inconsistent for an American making $34,000 to complain about the incomes and wealth of the top 1% in the United States and yet show no concern for the fact that he himself is in the top 1% of the world’s population based on income? Many Americans making $34,000 and above support income redistribution schemes (e.g. raising taxes on the top 1%) to reduce income inequality in America. Because they are themselves in the top 1% of the world’s population by income, shouldn’t these Americans also support redistribution of income and wealth from themselves (the world’s top 1%) to dirt-poor countries like Zimbabwe? If not, why not?

Source: Mark Perry, "Some Questions for Proponents of Income Redistribution," Carp Diem/AEI Ideas, January 12, 2014

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