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Tuesday, July 30, 2013

Income Inequality: Obama vs.Limbaugh--Middle Out or Trickle Down?

We are, as they say, live:

FT

Income Inequality: Obama vs.Limbaugh--Middle Out or Trickle Down?, by Mark A. Thoma: President Obama unveiled his latest initiative to enhance economic growth, create quality jobs, and reduce inequality last week, an approach he calls growing from the “middle out.” The basis of this approach is the idea that rising inequality has redirected income from the middle class to the top of the income distribution, and the reduced buying power of the middle class has reduced economic growth. Thus, the key to higher growth is to enact policies that increase the share of national income that flows to the middle class.
Of course, as with previous initiatives from the Obama administration to address our economic problems, a divided, gridlocked government means there is no chance of this initiative actually passing. In fact, the response from the political right was predictable, a claim that “trickle-down” supply-side policy is the key to fixing all that ails the economy. For example, Rush Limbaugh reacted the president’s speech by saying ...

But, as the column goes on to explain, this is a false debate (and there's a connection to inequality).

    Posted by on Tuesday, July 30, 2013 at 12:33 AM in Economics, Income Distribution, Policy, Politics | Permalink  Comments (26)


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