Paul Krugman: the stages of inequality rationalization (and their demolition)

Here are the stages of inequality rationalization:

1. Rising inequality? What rise in inequality?

2. OK, inequality has been rising, but it doesn’t matter, because we have lots of social mobility.

3. OK, we don’t have lots of social mobility. But that’s a good thing.

John Quiggin sees Tyler Cowen making the transition from #2 to #3, and does a systematic demolition job.

Go read Quiggin. I’d just like to note that I saw this coming way back in 2002, when I took note of the remarkable number of “sons of” serving in high positions, and concluded that “inherited status is making a comeback.”

http://krugman.blogs.nytimes.com/2012/01/25/the-sons-also-rise/

Krugman boils it down to a few simple points.