Economist Paul Krugman says the issue of income inequality is a problem without a simple or clear answer.
“I think the reason to be worried about income inequality is not what it does to GDP. The reason to be worried about income inequality is what it does to people, which is ultimately what we care about,” the Nobel Prize winner says.
He also responds to critics who say higher tax rates would disincentivize work by pointing out the counter example of New York City where rates are fairly high. “Does this city out here look to you like a place where people just don’t really work very hard because taxes are too high? It doesn’t strike me that way,” he says.