Income Inequality: The Reasons, the Consequences

And some creative solutions.
Income Inequality: The Reasons, the Consequences
The distribution of income and wealth has not only been unequal but also economically inefficient. iStock
Valentin Schmid
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Americans don’t want to be communists. The notion that everybody should make the same amount of money is far removed from our cultural values.

And yet, when we hear the term income inequality, we are automatically against it. Of course theoretically, if you are against income inequality, you think that everybody should have an equal—or the same—income. In reality, this is not how people understand the term.

It is more of an understanding that people should be fairly compensated for the work they do and that wealth should not be concentrated in the hands of the very few.

Valentin Schmid
Valentin Schmid
Author
Valentin Schmid is a former business editor for the Epoch Times. His areas of expertise include global macroeconomic trends and financial markets, China, and Bitcoin. Before joining the paper in 2012, he worked as a portfolio manager for BNP Paribas in Amsterdam, London, Paris, and Hong Kong.
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