As part of our ongoing partnership with the Hoover Institution at Stanford University, we spoke with Senior Fellow Richard Epstein about his views on income inequality and the prescription for improving our economy.
Epstein thinks the risks associated with income inequality are “exaggerated,” and that if created properly, income inequality will work toward the benefit of all:
Those people who get greater amount of wealth will consume some of it, they will invest the rest of it. What will happen is the size of the pie will start to increase, increasing the opportunities for people that are less fortunate than themselves.
He also touches on the controversial Bush tax cuts from 2001 and 2003, asserting that there is no way to introduce tax cuts without following the Bush model of disproportionately giving relief to those at the higher end of the tax bracket.
Epstein also recommends raising taxes on people at the bottom, suggesting that once low-income earner have to pay more taxes, there willingness to “impose government transfer programs” will reduce and wealthier individuals will have more disposable income to invest and hire others.
Do you agree with Richard’s thoughts on income inequality and changing the tax code? Comment below!
92Y and Hoover Institution at Stanford University are teaming up to go in depth on issues ranging from politics to economic prosperity to America’s role globally. Watch and comment on our videos, as we can’t have the conversation without you!