By now both major political parties in America accept the observable norm that inequality is a necessary condition of life today. The explosion of the Internet, instant communication, globalization and the old adage of comparative competitive advantage all led to income inequality over and above the man-made conditions of inequality. The latter is really inequality of opportunity – education and access to society’s resources.
The question that President Obama has learnt is not how to reduce the income gap but how to mitigate its insidious effects on society. The income gap exacerbates the wealth gaps and politicians would address the two together.
The Republicans have seemingly come to terms with inequality of income but hold on to the historic wealth inequality of America. They continue to tell their supporters that the Reganite supply side trickle-down economics will result in a tide that lifts all boats, writes David Brooks of the New York Times, but their supporters do not believe it more and more. This is why they turn in large numbers to a Donald Trump who tells them differently.
Bernie Sanders speaks of the obvious pernicious relationship between politicians and Wall St, but does not understand capital markets. They are every bit as necessary as infrastructure in any other industry or economic activity. He does not spell out his ideas for financing the many income and wealth inequality mitigation plans he has and does not tell us how he can maintain economic growth. People however listen to Bernie as he simply states what seem to explain income inequality.
Hillary Clinton tries to get her message over the noise of Trump and Bernie.
Cruz? Well he is stuck in an era of Regan’s supply side economics.
And the above does not even touch on the attack on free trade and immigrants as a source of this wealth and income inequality.
