Why do liberal and conservative evangelicals tend to disagree so often about economic issues? This is the fourth in a series of posts that addresses that question by examining 12 principles that generally drive the thinking of conservative evangelicals when it comes to economics. The first in the series can be found here; Part 2 can be found here; and Part 3 can be found here. A PDF/text version of the entire series can be found here.
9. Social mobility — specifically getting people out of poverty — is infinitely more important than income inequality.
In his recent State of the Union address, President Obama signaled that income inequality will be his domestic focus during the remainder of his term in office. The fact that the president considers income inequality, rather than employment or economic growth, to be the most important economic issue is peculiar, though not really surprising. For the past few years the political and cultural elites have become obsessed with the issue.
That was not always the case. In 1990, a Nobel-winning economist wrote:
One reason that action to limit growing income inequality in the United States is difficult is that the growth in inequality is not a simple picture. Old-line leftists, if there are any left, would like to make it a single story–the rich becoming richer by exploiting the poor. But that’s just not a reasonable picture of America in the 1980s. For one thing, most of our very poor don’t work, which makes it hard to exploit them. For another, the poor had so little to start with that the dollar value of the gains of the rich dwarfs that of the losses of the poor.
The economist who wrote that was none other than Paul Krugman, who more recently said, “the president was right. Inequality is, indeed, the defining challenge of our time.”
The reason for Krugman’s change of opinion has less to do with economics than with political partisanship. In the apparent absence of other real economic problems, some progressives have decided to allow covetousness to drive their political agenda.