The Issue of Income Inequality - Article Example

Action Report According to Klein there are two key schools of thought with regards to income inequality: the redistributionists and the fatalists. Fatalists, according to the author, argue that increasing inequality is the ineluctable effect of a transforming economy, and redistributionists, on the other hand, blame a lethargic government and a skewed tax system (Klein 1). This article discusses this debate on equality with regard to which of these two parties is most responsible for killing equality.

The article is split into four parts: the introduction, the conclusions of the two schools of thought, the mitigation theory, and finally the wider appeal. The introduction part of the article offers insight into the general views of the two schools and what led to their views. The fatalists’ view is mostly persuaded by technology (Klein 1).In the conclusion part, both fatalists and redistributionists conclude that the government has not brought about inequality (Klein 1). According to them, social services and taxes have not changed all that much, and; therefore, raising taxes or enhancing infrastructure spending, for instance, will not fix it either.

The only issue is that redistributionists argue that fatalists are not aware of how the government has aided inequality by cutting taxes on wealthy people and not considering the poor (Klein 1). In the mitigation theory, Fieldhouse argues that greater taxes on the rich might do more to restrain inequality than people notice (Klein 1). Finally, the wider appeal section, discusses how the Federal Reserve’s choice to prioritize low inflation above full employment is a regime intervention of staggering significance, even though it is hardly ever presented that way (Klein 1).