It isn't as if the roots of America's over-the-top inequality are any mystery, or what it would take to start moving in the opposite direction. In an article at truth-out.org, Salvatore Babones examines the possible link between economic growth and inequality--and concludes that it really doesn't matter:
No one really knows how to promote economic growth. Everyone has their pet ideas — including me. But if we knew how to promote growth, we would be doing it already. Everyone likes growth.
On the other hand, we know exactly how to reduce inequality. We can raise the minimum wage, increase taxes on investment income, expand public education, and make it easier for workers to join unions. Most of all, we can tax the rich at a higher rate and use the income generated to invest in making life better for everyone.
The inequality and growth debate is a red herring. It just doesn’t matter. The problem is inequality, and its solution is simple. It may not be easy to get rich people to give up some of their enormous gains of the last forty years, but it’s straightforward. Tax them. And use the proceeds to make our country — and our world — a better place for all.
As Babones put it earlier in the piece, "If something is bad for 80% or 90% of the population, does it really matter whether or not it is also bad for growth? Isn’t it bad enough that it is bad for 80% or 90% of the population?"
Simple enough, no? If only we had the political will to act.