Archive for June 19th, 2013

As unpopular as it may seem, professor of economics Greg Mankiw published an article that is now forthcoming in the Journal of Economic Perspectives:

Defending the One Percent

If you take from a theory only the conclusions you like and discard the rest, you are using the theory as a drunkard uses a lamp post – for support rather than illumination.

The key issue is the extent to which the high incomes of the top 1 percent reflect high productivity rather than some market imperfection.

The most natural explanation of high CEO pay is that the value of a good CEO is extraordinarily high.

In the end, the left’s arguments for increased redistribution are valid in principle but dubious in practice.

The same logic of social insurance that justifies income redistribution similarly justifies government-mandated kidney donation. No doubt, if such a policy were ever seriously considered, most people would oppose it.

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