The increases in income inequality creates problems and increases serious risks. Some people have a political ideology that drives their thoughts on any economic policy. I instead, look to economic issues if they benefit society. The reason capitalism is great is because society benefits. The policies that create huge income inequality are bad for society and should be changed.
Sadly the strong support for policies to elevate trust fund babies in the USA have created a society where economic wealth in the USA is now greatly defined by how rich your parents are instead of your ability and effort. The USA used to have great social mobility now we have changed society to become more like feudal Europe, while Scandinavia has become more like the USA used to be for social mobility.
Related: Economic Fault, Income Inequality – Middle Class Families from 1970-2005 – Income Inequality in the USA (2006) – The Widening “Marriage Gap” is Breeding Income Inequality
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[…] tax system. But that is mainly a political debate. There are good economic arguments for the bad consequences of too unequal a distribution of wealth (which the USA has been moving toward the last few decades – […]