I agree with those on the left that a lot of income and wealth is random.
But to me that does not mean that it can be changed.
- I for one am not sure what caused the increase in inequality though I have heard many of the theories none seems to work. I think it might be multiple things like:
- Growth of finance (maybe Vanguard and the EMH will turn this around).
- Investors discovered that better people can raise their profits and started bidding good managers up.
- Bigger markets for sports and entertainment. Worldwide markets.
- Anti-trust causes in sports. I think monopoly sports leagues would have lower paid athletes with more teams and lower seat prices?
- Software in network effects.
- Growth in healthcare and providers influencing regulation.
- Taxes were very high in the 1950 + 1960s and that might have had some effect but the rich did not pay much more of their income in taxes then than they do now. So I do not think that was so important. If taxation had a big effect it could mostly be a a measment effect in that I bet a lot more income was hidden then.