Krikorian On Greenspan's Recent Wackiness!
Greenspan's original comments here.
Mark Krilorian of CIS responds...
Now here's something only an economist could come up with. Alan Greenspan said at a conference this week that high levels of economic inequality are political problem, and he's right: "You cannot have a system that we have unless the people who participate in it believe it is just." Too much concentration of income at the top undermines political support for the market and thus strengthens the hand of the socialists — er, the Democrats.Indeed! Do you think any politician would run on that slogan?
So, what's his solution? Flood the skilled labor market with immigrants! You see, since immigration lowers wages, massive importation of skilled workers would drive down their wages and, presto, no more income gap! In his words: "Our skilled wages are higher than anywhere in the world. If we open up a significant window for skilled workers, that would suppress the skilled-wage level and end the concentration of income."
Anyone want to run for office on that platform? Anyone? Anyone? Instead, how about reducing inequality by cutting immigration overall, so we stop flooding the low-skilled labor market, and let blue-collar wages increase? Think that would be a better way to shore up political support for capitalism among the poor?
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