Question of the Week
Yesterday on This Week, George Stephanopoulos cited a “stunning” statistic from the Congressional Budget Office:
From 2003 to 2005, the increase in income for the top one percent exceeded the total income of the bottom twenty percent.
Turn that over in your mind for a moment before we move on to the Question of the Week, which comes to us via the Hoover Institute, a conservative think-tank at Stanford University.
How much does the gap between rich and poor matter? In 1979, for every dollar the poorest fifth of the American population earned, the richest fifth earned nine. By 1997, that gap had increased to fifteen to one. Is this growing income inequality a serious problem? Is the size of the gap between rich and poor less important than the poor’s absolute level of income? In other words, should we focus on reducing the income gap or on fighting poverty?
It’s a fair point. Do rising waters raise all ships? And if so, does it matter if the rich get richer faster than the poor get richer? Or is income inequity really the problem, and a bigger slice of the pie for the rich means less for everyone else? And is it okay to mix ship and pie metaphors when talking about economics? I guess what I’m asking is this:
Does the income gap matter?