The editors at The Economist make a thoughtful case for how America can recover its promise of equal opportunity while addressing the growing inequality in our nation’s economy. And they manage to do so without pandering to liberal anti-capitalists who want to sock it to the rich, or the Tea Party reactionaries who see any government involvement in the economy as The End of Liberty in Our Time.
They call, in effect, for a radical simplification of the US tax code, eliminating loopholes that exclusively benefit the wealthy, and plowing the resulting windfall into early childhood education.
It is a thoughtful piece and worthy of a wider debate. Tax code reform is long overdue, and the nation spends too much treasure chasing revenue.
At the same time, we need to look carefully at how to spend the money on restoring opportunity. Simply running an aqueduct of cash into schools, for example, will not end their dysfunction. We need a vehicle that works before we fuel it.
But the editors are looking the right way. A simpler tax system and a hyper functional education system are two essential keys to fixing America’s ills.
- The Impact of Growing Inequality (economistsview.typepad.com)
- What should we do about income inequality? (finance.fortune.cnn.com)