Why Rising Inequality Also Harms the Wealthy

• In Event: 076 - Plenary Session. The Progressive Neo-Liberal Challenge to the Politics of Distribution and Recognition

Abstract

Declines in top marginal tax rates have been reinforcing market-driven increases in income inequality in recent decades. The resulting government budget deficits have caused significant deterioration in basic public infrastructure. So although today’s wealthy can afford more expensive cars than in the past, they must drive them on roads of steadily deteriorating quality. Evidence suggests that this and other similar changes in spending patterns have on balance reduced the well-being of wealthy families.

Author

• Robert H. Frank, Cornell University