Inequality Distorts Markets

image of the Biltmore Estate in Asheville, NC

I’m surprised by what is missing in popular debates about economic inequality. A few arguments get repeated over and over — namely, that nobody could possibly work hard or smart enough to deserve billions and, in reply, that envy and resentment of the rich is a poor basis for policy. But many other, equally obvious and pressing arguments are ignored. This is my attempt to articulate one of those arguments, one which strikes me as both…