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The "Technological Change" Dodge

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In a post engaging in the time-honored pastime of Mickey Kaus-bashing, Kathy makes an important point with respect to Kaus’s claim that increasing income inequality is the result of “increasing returns to skill produced by trade and technological change”:

…over the past several decades, other industrialized countries were faced with the same economic forces, such as technological change, globalization, and trade, that the U.S. did. Yet among OECD countries, only the U.S. and the U.K. saw large increases in wage inequality; the other countries saw only modest rises in inequality.

Right. Globalization, technological change, etc. happen to all market economies, but most of them have nothing like the increasing inequality of the U.S. There’s nothing inevitable about it; it’s in significant measure a product of policy choices.

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