More on Inequality as a Negative Externality

Via Matt Yglesias, Wired has a summary of some research that purports to show that those with higher socio-economic status behave less ethically. This type of research supports my view that we should treat inequality as a negative externality of market capitalism and, therefore, tax it directly. In this view high marginal tax rates serve as a Pigovian Tax and therefore may have a positive effect.

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