My GMU and Mercatus Center colleague Tyler Cowen has this must-read essay in the January-February 2011 issue of The American Interest on income inequality:

 Here's a sample paragraph:

In terms of immediate political stability, there is less to the income inequality issue than meets the eye. Most analyses of income inequality neglect two major points. First, the inequality of personal well-being is sharply down over the past hundred years and perhaps over the past twenty years as well. Bill Gates is much, much richer than I am, yet it is not obvious that he is much happier if, indeed, he is happier at all. I have access to penicillin, air travel, good cheap food, the Internet and virtually all of the technical innovations that Gates does. Like the vast majority of Americans, I have access to some important new pharmaceuticals, such as statins to protect against heart disease. To be sure, Gates receives the very best care from the world's top doctors, but our health outcomes are in the same ballpark. I don't have a private jet or take luxury vacations, and—I think it is fair to say—my house is much smaller than his. I can't meet with the world's elite on demand. Still, by broad historical standards, what I share with Bill Gates is far more significant than what I don't share with him.





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1 Comment so far

  1. Steven Thorpe on January 5, 2011 3:29 pm

    Yes, I know, he is not as rich as Bill Gates, but what percentage of the world population matches this guy's lifestyle?


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