1. Why is Income Inequality Rising?

2. Why is the distribution of income and wealth so important
Why is the distribution of income and wealth so important? And, how do we measure the distribution of income?

10. Gregory Mankiw of Harvard has been discussing the issue of rising income inequality.
Facts:
Inequality high by all measures, in the US high in the 1920s, fell to a low in the 1970s, began rising again and now is roughly same as 1920s.
Very little reductions in poverty recently
Global income inequality has improved in many developing countries.

11. Five Non-Exclusive Reasons for Increased Income Inequality
-- Race Between Education and Technological Progress
-- Globalization and Trade Effects
-- Immigration or Labor Migration
-- Superstar Effect
-- Assortative Mating

12. Mankiw Possible Solutions
-- Tax Reform
-- Educational Reform
-- Trade Restrictions (not a good idea)
-- Immigration (push skilled immigration)
-- Superstars are not really the problem
-- Very Difficult to Control Assortative Mating
-- Wealth Tax (not a great idea)