"On Wilson’s Muddled Defense of the Top 1 Percent"

Larry Mishel reacts to a recent commentary in the Washington Post on income inequality that "belittles the need to tax the rich more":

On Wilson’s muddled defense of the top 1%, by Larry Mishel: Last week, the Washington Post published an essay by James Q. Wilson that’s bound to generate controversy. While Wilson acknowledges rising income inequality, his analysis of the factors driving the trend is seriously flawed. Furthermore, he belittles the need to tax the rich more in order to help the poor or to address overall inequality.

Wilson rightly acknowledges the growth of income inequality and correctly notes:

“The mere existence of income inequality tells us little about what, if anything, should be done about it. First, we must answer some key questions. Who constitutes the prosperous and the poor? Why has inequality increased?”

It is after this point that his argument goes off track. While there is much to comment on, I will only address a few issues, starting with Wilson’s explanation of rising inequality. ...[continue reading]...