How Big Government Drives Inequality

Main St. Agenda by from Wall Street Journal, January 16, 2014

Inequality is the wedge issue that Democrats hope will carry them through the 2014 and 2016 elections, neutralizing the Obamacare fiasco. The issue has popular appeal because median incomes (after inflation) have been falling throughout the recovery, while high-end incomes are increasing rapidly.

For progressives, this situation seems made to order: If you want a flatter income distribution, don’t you need bigger government to get it? Yet experience shows the opposite: Washington’s increased size and power has concentrated income and wealth in fewer hands. Making government bigger will exacerbate this problem—it is already too big, intrusive and expensive to allow a robust economy that benefits everyone.

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