President Obama says that he wants to make income inequality– the growing gap between the richest and poorest Americans– the defining issue during 2014. He points with alarm to the fact that distribution of economic gain is increasingly favoring a small percentage of the population– those who are already well off. Duh! Why would anyone find that surprising, much less somehow illogical? But to Obama, it is simply unfair for a corporate CEO to be paid hundreds of thousands of dollars a year, while a high school dropout working at a fast food restaurant makes minimum wage. And in the president’s mind, that can be fixed by simply taking money from those in our society who have figured out how to be successful and giving it to those who haven’t figured it out– in essence, redistribution of wealth.
The fact is, however– except maybe in Sherwood Forest– taking from the rich and giving to the poor is not going to have much impact on the problem of income inequality. Continue reading