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Rich Man, Poor Man: How to think about income inequality. (Hint: It's not as bad as you may think).

National Review

| June 16, 2003 | Hassett, Kevin A. | COPYRIGHT 2003 National Review, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

As the 2004 campaign begins in earnest, it appears the Democrats' preferred strategy will be to tie a weak economy to President Bush's economic policies. But what will they talk about if the economy gets strong? Several pieces in the New York Times suggest the answer: income inequality. The best example is a Times Magazine piece by Paul Krugman contending that we are entering a new Gilded Age as "extravagant as the original." He recounts anecdotes of truly awe-inspiring wealth, of executives being treated like "royalty," and reports that in 1998 the 13,000 richest families had about the same combined income as the 20 million poorest households. The data are pretty ...

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