The Inequality We Should Worry About

Published: April 6, 2021

Both good and bad income inequality exist. Good inequality comes from entrepreneurial innovation that improves the lives of consumers, even if the inventor gets wealthy. On the other hand, using political muscle to get rich leads to bad inequality, as it comes at the expense of consumers. It is vital to have government policies that can distinguish between good and bad inequality to increase innovation, strengthen the economy, and ultimately give people more incentive to innovate. 

Discussion Questions

  1. What are some examples of good wealth inequality?
  2. Can the government be prevented from providing special favors?

Additional Resources

  • “Income Inequality Isn’t the Problem” by David Henderson. Available here.
  • David Henderson gives a speech titled “Economic Inequality: Popular Misconceptions and Important Facts.” Available here.

Cast

David R. Henderson

David R. Henderson

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