So this is a hot topic these days...actually, I was once really into the topic and had very strong opinion on it. I have revised my view dramatically over the years after thinking harder and observing more.
So here is what I think. I am only semi-sympathetic with Occupy the Wall Street. (\begin{digression} I think there is some truth in that the financial sector has grown too powerful over the years and they have reached a state too big to save. At the same time, by concentrating on arbitraging and profiteering the financial sector has largely lost its value in intermediation, this I believe is not a good trend. The distorted incentive has made financial sector more dangerous. The distortion of incentives (rather than sophisticated financial product, has led to the current crisis, and is likely lead to the next one. \end{digression}). However, I am not sympathetic with their super liberal view on income redistribution. I do not have any faith in income redistribution, which I believe only feed laziness and stupidity. People earn what they work for. that is it. There is absolutely zero point taking hard-earned money to those who did nothing. I do not believe in unemployment story..many times people choose to be unemployed. They feel the wages are not high enough, the working hours too long...but if you offer such a job to a Chinese, they would take the job readily and happily. If you do not want to work, then too bad, you have to bear ALL consequences. In Boston, I have seen so many homeless people on the street, they had rather spent money buying cigarettes than spending them on more useful things. If they are not helping themselves, why should we? As far as I am concerned, the government should get out of this populism activities. But I do not mean the government has no role to play. On the contrary, the government should provide education opportunities!! I think that is the ill of the society. Children from poor families do not have access to acceptable education resources and thus remain ignorant and incapable. That is the way to alleviate income inequality! Also, the government should offer re-education opportunity to the unemployed especially in today's world, when structural unemployment is increasing. Finally, I am not saying the rising income inequality does not matter. It is the consequence of poor government. First, they fail to provide adequate education opportunities. Second, it is the result of crony capitalism. i forgot where I read the paper, but the rising income inequality has little to do with skill premium, they skilled workers did not benefit. It is the top 1%. It is those big CEO's and so forth. So I do not buy that rising income inequality comes from the advance of technology or the competition from developing world. That is bullshit!
