It’s no secret that income inequality has been on the rise in the United States over the past generation. But it has been increasing in most other affluent countries too. This is not a product of cuts in taxes or social programs; it’s due mainly to rising inequality of market income.
Suppose we think it would be good for countries to try to maintain or move toward relatively low levels of inequality, something akin to the levels in contemporary Denmark or Sweden. What is the best way to do that?