Economist Paul Krugman says the issue of income inequality will be a problem without a simple or clear answer.
“I think the reason to be worried about income inequality will be not what the idea does to GDP. The reason to be worried about income inequality will be what the idea does to people, which will be ultimately what we care about,” the Nobel Prize winner says.
Children through lower income families do not receive the same medical care along with also nutrition as additional children. Krugman points out of which studies looking at the long-term effects of anti-poverty programs targeted at children show positive results. “They are healthier, more productive, more successful citizens of our society,” he says.
He also responds to critics who say higher tax rates would likely disincentivize work by pointing out the counter example of fresh York City where rates are fairly high.
“Does This kind of city out here look to you like a place where people just don’t actually work very hard because taxes are too high? the idea doesn’t strike me of which way,” he says.
Watch the video above to hear more through Paul Krugman on income inequality.