Inequality by Choice

A report at the Economic Policy Institute by Lawrence Mishel, Heidi Shierholz, and John Schmitt disputes the "skill-based technological change" (SBTC) model for growing wage inequality. Rather, policy decisions regarding issues such as minimum wage, unionization, and globalization have greater effect.  Other wealthy countries have institutions in place to lower inequality (note the horizontal axis doesn't start from zero):

Update (December 1):  Combating inequality takes an economic-rights movement.  Michael Lind argues that economic-rights progressivism versus libertarian conservatism is the central political battle of our time.

The mainstream right’s economic vision is libertarian, pure and simple: smaller government, lower taxes, free trade and deregulation. Add to this the goal of replacing universal, tax-financed social insurance programs such as Social Security and Medicare with means-tested vouchers to subsidize for-profit providers of retirement savings and medical insurance and medicine, and you have pretty much the whole right-wing economic program.

Only direct legislation can serve as a remedy to the evils of low wages and inadequate benefits. Through the government, America’s citizenry must insist that all businesses in the U.S. pay a living wage. And employer benefits should be gradually phased out and replaced by universal, generous social insurance — not only universal health care and an expanded Social Security system, but also a new federal system of family leave, paid for by payroll taxes.

Update (December 4):  In a speech sponsored by the Center for American Progress, President Obama called growing income inequality a "defining challenge of our time".

Update (December 10):  Growing inequality has made the United States a country "rich in name only".

Update (December 15):  Addressing inequality means more than just creating equality of opportunity at the expense of looking at equality of outcome.  As Sean McElwee demonstrates, outcome determines opportunity for the next generation.

Update (January 25, 2014):  Sean McElwee argues that a focus on upward mobility is not a substitute for addressing the immorality of inequality.

Update (January 29, 2014):  An interview with John Schmitt.

Update (January 30, 2014):  Eleven problems with inequality.

Update (March 16, 2014):  Thomas Frank writes about President Obama's pivot from "inequality" to "opportunity" and how Obama failed to bring meritocracy to Washington, DC.