Wealth inequality is a growing problem around the globe, but when politicians debate it "it mostly produces heat, not light," grumbles the Economist in a new op-ed. "At the core, there is a failure of ideas." Conservatives don't think inequality matters, and liberals think raising taxes and spending more will solve all ills. The magazine is suggesting an alternative that it dubs "True Progressivism." The first step: "A Rooseveltian attack on monopolies and vested interests," from Chinese state-owned businesses to Too Big to Fail banks.
Then, realign government spending so it actually benefits the poor and young, limiting the pace at which welfare spending is increasing on the rich and wealthy. We should also increase education choice—"no Wall Street financier has done as much to damage American social mobility as the teachers' unions." Finally, we must reform taxes, increasing the capital income tax and slashing deductions that disproportionately benefit the wealthy. Some countries and leaders are already embracing this agenda, but more need to. "Otherwise, everyone will pay." For the full article, click here.