Money and Monetary Policy

Inequality isn't immoral

Inequality isn't immoral

There has recently been quite a bit of discussion concerning the growth of economic inequality. The size of the gap between the economic resources of those who have more money and those who have less has been increasing rapidly. This development is regarded by many people as deplorable.

In a recent State of the Union address, for example, President Obama declared income inequality “the defining challenge of our time.”

Many people believe that economic equality has, in itself, considerable moral value. They urge that efforts to approach the egalitarian ideal should therefore be accorded a significant priority. In my opinion, this is a mistake. Economic equality is...