Friday, December 2, 2011

Equality doesn't always mean redistribution

With the Occupy protests protesting the rising income inequality in the States, it might be useful to compare the disparity here versus the European countries. Something interesting that this journalist notes is that "the main reason the Netherlands has low levels of inequality is that incomes in the Netherlands just aren't very unequal, even before taxes or transfers." So if the government in the Netherlands not redistributing the wealth through taxes or transfers, then why does their country have a smaller income gap than we do in America? The answer might be as simple as the size of the economy. In a large economy like the U.S. (and Germany, Italy, and France) "the bigger the economy the greater the rewards for superstars."

http://www.economist.com/blogs/democracyinamerica/2011/12/inequality-and-taxes

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