People, Not Ratios: Why the Debate Over Income Inequality Asks the Wrong Questions

Abstract

The debate over income inequality became especially heated following the English-language publication of French economist Thomas Piketty’s bestselling book, Capital in the Twenty-First Century. The controversy has generated more heat than light. This paper seeks to clarify common points of confusion in the inequality debate and expose the fundamentals behind the ideological tussle. For all sides of the inequality debate, the overarching goal should be to reduce global poverty.