Overestimating income inequality

Published January 31, 2014 5:00am ET



Some Democrats seem to think that the very fact “inequality” even exists should be enough to lure the entire nation to the progressive cause. New York Times columnist Paul Krugman, in a recent piece imploring President Barack Obama to put emphasis on social justice in his State of the Union speech, argued as much, writing that “to focus on inequality is political realism. Like it or not, the simple fact is that Americans ‘get’ inequality; macroeconomics, not so much.”

They may “get” it, but the message is probably a lot less powerful than Krugman imagines.

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