Question

Inequality? Has it gone too far? Should we address this issue, using taxes, subsidies?

Answer 1

Yes, in the U.S the income inequality has been growing over the thirty years. The ten percentage of american population averages more than 9 times of income as the bottom ninety percentage have. The top 1 Percent population have fourty tmes more income than the bottom ninety percentage. The top 1 percent of the populaton has doubled their income in the middle of the 20th century. Between the period 1992- 2002 the income of the ultra rich people has increased so very much.

To address this issue we should use a combination of both taxes and subsidy, such as the progressive income taxes would be more efficent in this kind of situations. Also the government should increase the welfare payments to the society such as unemployment insurance, health benefits etc..

We cannot over come inequality with using taxation or subsidies alone, a combination of these both will do the work.