If capitalism creates unacceptable income inequality, what can be done about it?
A natural result of capitalism and the free market is income inequality. Advocates of capitalism argue that inequality, to the extent that it recognizes differences in effort and results, is good. But a frequently asked question these days is: Are we exceeding the optimal point of inequality and descending into an era of a vanishing middle class and, with it, the spending power and inclination with which it fuels an economy?
This article was provided with permission from Harvard Business School Working Knowledge.