Saturday, June 29, 2013

Ethics and Income Distribution

This is an excellent column for showing differing views about the causes of increased income inequality and the good and bad of it.

If everything is as  in the model of perfect competition, then the shares of income that go to capital and labor are entirely market determined.  The notion that people in power either exercise restraint or self-indulge and capture more income for themselves requires some degree of market power to achieve.

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