A Nobel Prize-winning economist thinks we’re asking all the wrong questions about inequality

Source: A Nobel Prize-winning economist thinks we’re asking all the wrong questions about inequality

“Inequality is not the same thing as unfairness; and, to my mind, it is the latter that has incited so much political turmoil in the rich world today.”

— Angus Deaton
economics professor at Princeton and recipient of the 2015 Nobel Prize in economics

What’s unfair

Each year, the US wastes a trillion dollars ($8,000 per family) more than other wealthy nations on healthcare costs, with worse outcomes.

Many industries, like tech, media, and healthcare, are now run by a few, large companies.

Twenty percent of workers sign non-compete clauses, which prevent them from taking on side-hustles, reducing their incomes and bargaining power. What’s more, over half of non-union, privately employed Americans—some 60 million people—have signed mandatory arbitration agreements, which means they can never sue their employers.

Companies are increasingly replacing full-time, salaried workers with contractors.

As median wages have stagnated, corporate profits relative to GDP have grown 20% to 25%.