(Steve Moore, Townhall) For all the obsessing in Washington over income inequality, why isn’t there more outrage over government policies that exacerbate the problem? There are hundreds of programs that increase poverty in America. One is trade protectionism. Trade barriers raise prices and act as a regressive tax on Americans, Boudreaux explains. The minimum wage clearly fits into this category, as well.
A new study by Peter Ferrara for the Committee to Unleash Prosperity shows that if the average poor person who works 40 hours a week could simply put their payroll tax dollars into a personal 401(k) retirement account and tap into the power of compound interest, they would retire with a larger monthly benefit and have $1 million or more in an estate. Social Security robs nearly every low- and middle-income family with a full-time worker of at least $1 million over their lifetime. What a deal!
Arguably, the program that has most hindered upward mobility is the government school system in inner cities. Study after study finds abysmal educational outcomes and even unsafe environments for schoolchildren despite cities spending upward of $20,000 per child.
Steve joined Lars today to discuss further why the government contributes to the growing income inequality.