How to Reduce Inequality

The Economist recently had an article on inequality that I found annoying. They claim to have put forth a "radical centrist" proposal to reduce inequality. Unfortunately, their proposal reads more like a lame centrist proposal, with the usual centrist talking points: school reform, eliminate deductions in the tax code, reform entitlements, etc. Their advice for third world countries is basically to discontinue poor government policies (the Chinese Hokou system, fuel subsidies).

The problem with these reforms is that they don't really have much to do with inequality. Or at least they aren't ways to attack inequality directly. Here are three ideas:

1) Let people from poor countries move to rich countries. This is the best way to reduce global inequality. When people move to the U.S. from a third world country their real income will almost always go up.

2) Use our tax system to redistribute money from rich people to poor people.

3) Use monetary and fiscal policy to reduce unemployment. When unemployment is low more people have jobs, and those who have jobs can more easily bargain for a raise.

It's fine if you don't like these ideas, or are concerned about secondary effectss. But this is how you attack inequality. The Economist just took a bunch of policies they already favor and then claimed enacting those policies is the way to reduce inequality. It's really disingenuous.