Thursday, 1 September 2011

Towards a more equal society

Towards a more equal society
IN 2004 Michael McDowell famously argued that inequality is an inevitable part of any society that offers people incentives to succeed. His comments drew heavy criticism from a wide variety of left-leaning critics and social commentators, and prompted yet another version of the age-old debate about taxation and social spending.

Taken literally, his remarks are difficult to dispute: some degree of income inequality is inevitable when markets are free and open. Modern capitalism leads to wage differentials between people of varying levels of education, experience, skills and work/leisure preferences. Free trade and technological change result in the rise and fall of returns across the economy...
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