What if we solved economic inequality by passing a law that ‘the ratio of the top income to the bottom income in New Zealand ought not to exceed six to one’? Apparently this would mean ‘that no New Zealander should have a gross weekly income of less than $270 ($14,000 per annum) or more than $1600’. On face value this sounds fair to me. It’s one of the ideas raised by Ministry of Social Development Principal Advisor David Bromell in a thoughtful article entitled ‘Income inequality and the economy of ideas’ (Download David Bromell) which is published in the latest Policy Quarterly journal, and is based on his presentation to the recent University of Otago symposium entitled ‘Why Economic Inequality Matters’. The overall argument of Bromell is that turning a ‘big idea’ like economic equality into public policy comes at a cognitive, economic and political price. For instance, one of the cognitive prices we would need to pay in New Zealand is to move away from the ‘politics of identity’ towards ‘a politics of social stratification, social mobility and economic equality’. [Read more below]
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