Shiller: Need Tax System Response to Rising Inequality

The video discusses a chart from the World Economic Forum highlighting the stagnation of US median household income since 1989. It explores the challenges of middle-class income leveling and rising inequality, emphasizing the need for tax reforms to address these issues. The speaker suggests that such reforms would not harm entrepreneurial spirit but rather ensure balanced economic growth.

What does the chart discussed in the Davos meetings highlight about American household income?

• A consistent decline in income since 1989

• A slight increase in recent years but overall stagnation

• A significant increase in income since 1989

• A rapid increase in income for the top 1%

What is one of the main economic challenges discussed in relation to the middle class?

• The decline of entrepreneurial opportunities

• The rapid growth of middle class wealth

• The leveling off of middle class incomes

• The increase in middle class tax rates

What is suggested as a potential solution to rising inequality?

• Increasing taxes on the middle class

• Implementing a tax system that responds to inequality

• Reducing taxes for the top 1%

• Eliminating all taxes

What is the goal of the proposed tax system in relation to inequality?

• To ignore inequality and focus on other issues

• To increase inequality for economic growth

• To ensure inequality does not worsen

• To completely eliminate inequality

How does the proposed solution aim to affect entrepreneurial spirit?

• By heavily taxing all entrepreneurs

• By eliminating all entrepreneurial opportunities

• By allowing entrepreneurs to thrive within limits

• By discouraging entrepreneurship