What political policies are most conducive to income inequality in the United States?

Question

I am doing a 4-6 page essay in Political Science class in regards to income inequality and poverty in the United States. What public government policies would be likely causes of income inequality?

Answer 1

Income inequality in the United States is caused primarily by an inequality of productivity among its citizens, and secondarily by a government that coercively taxes the productive people and gives it to those who don't produce.

If you want income equality (that's not a right given in the US Constitution, since the US was originally designed as a merit based free-enterprise culture), I would suggest you take North Korea as an example of what happens when governments redistribute wealth to create "equality."

The best programs the US should put forward are like the Sherman-Anti Trust act: big rich people should be forced to compete; should not "buy" government influence, and government should not over-tax their productive people.

And remember, the US has some of the richest "poor" people in the world, in a system that is fluid and does allow people to improve their lot.

Answer 2

The ones suggested most often in suppressing wage growth are increasing trade, immigration and anti union policy. The theory of the natural rate of unemployment encouraged the fed to run a tight money policy keeping unemployment rate at relatively high levels by reducing the demand for labor. The lowering of the top marginal tax rates have provided greater incentives for rent seeking by CEO's and media stars. The non government reasons are increasing returns to education and/or to interpersonal skill due to the high tech revolution.
The increase in women's wages has also increased the income difference between one and two income families. None of these have been shown to have more than a small effect.