Should the government do anything to reduce the income disparity in this country?

Question

Should the government do anything to reduce the income disparity in this country?

Answer 1

Yes. Government policies  on trade, regulations, taxes, immigration, education, etc, effect the the income distribution as well as  labor law  and the minimum wage which act more  directly. Also tight monetary policy with high interest rates  keep labor cost down by depressing wages, are made necessary to control inflation when the government run large deficits.

The growth in the income inequality over that last 35 years is at least in part due to the shift in government policy in the US. Other industrialized countries have  also seen some increase in inequality, but none   as much as we have, and the US has not seen any faster growth in per capita income than the average.

Answer 2

No.  The Government does not dictate what wage private industry pays its workers. That would be Socialism and be destructive to America's Economy.

If somebody's income is in disparity, I suggest they increase their education level or seek new employment paying a higher wager either locally or uproot and move to a new city that will pay.

Answer 3

Only if you wish to discourage the output of the most productive.  

Answer 4

Alby is partly correct.  Of course we do have the minimum wage in the U.S., which is intended to assist the income disparity.  

The best thing our government can do for wages, in my view, is decrease tax levels accross the board.  With corporate taxes decreasing, the enterprise will attempt to optimize its newly available capital.  This will find its way into the economy, and will directly or indirectly improve workers wages.

There has to be some government influence, with our economy close to efficient, but still not yet there.