Condemned to plutocracy? The relentless rise of US inequality

As Barack Obama’s presidency was coming to a close, Jason Furman, then chairman of the president’s council of economic advisers, laid out the strides his administration had made to curb the nation’s exorbitant income inequality in “the largest investments in reducing inequality since the Great Society”. Indeed, by the end of 2016, taxes and transfers cut the share of income accruing to the richest 1% of households by just over a fifth, according to estimates from the congressional budget office (CBO), more than under any government since at least Jimmy Carter’s. They raised the slice of income going to the poorest fifth from 3.9% to 7.9%, the highest share since at least 1979. Those were the days. As Elon Musk is anointed the world’s first trillionaire , following the public offering of shares of his internet to AI conglomerate SpaceX, that moment, just 10 years ago, when the government bragged about its efforts to curb America’s lopsided distribution of prosperity, might give us some hope that we are not condemned to plutocracy; social and political forces can stop inequality’s relentless rise. Benjamin Franklin liked to talk of America’s “happy mediocrity” – a country with “few … so miserable as the poor of Europe … few that in Europe would be called rich”. And yet, America’s history of combating inequality is rather grim. …