AND GOVERNMENT ABILITY TO ALTER IT: none. This poses a serious problem. To accep

http://www.epi.org/publication/a-decade-of-flat-wages-the-key-barrier-to-shared-prosperity-and-a-rising-middle-class/INEQUALITY AND GOVERNMENT ABILITY TO ALTER IT: none.

This poses a serious problem. To accept market outcomes as given, and then try to offset the structural imbalances embedded therein through tax and transfer policy alone, is a fundamentally limited strategy. As those outcomes become increasingly unequal, as has been the case over the last three decades, such a strategy implies yearly increases in redistribution through the tax code and transfer system, something our political system will not support even once we return to functional politics. The uniquely influential role of money in American politics limits this strategy even further.”