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Gini in a Bottle: Some Facts on Income Inequality

March 2012

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Mar 2, 2012 U.S. Income Inequality: It’s Not so Bad: Spring 2010 Inside the Vault Lesson Plan

This lesson plan discusses the redistribution of wealth through taxation. In this lesson, students use different household scenarios to examine the ability-to-pay principle of taxation. Students analyze the household scenarios using the progressive tax system and then re-examine the same scenarios using a flat tax, to compare the two tax systems.

Mar 1, 2012 U.S. Income Inequality: It''s Not So Bad

By Tom Garrett, The Regional Economist, October 2008

Although income inequality is seen as a social ill by many people, it is important to understand that income inequality has many economic benefits and is the result of, and not a detriment to, a well-functioning economy. The unconstrained opportunity for individuals to create value for society, which is reflected by their income, encourages innovation and entrepreneurship. Economic research has documented a positive correlation between entrepreneurship/innovation and overall economic growth. Sound economic policy to reduce poverty would lift those out of poverty (increase their productivity) while not reducing the well-being of wealthier individuals. Tools to implement such a policy include investments in education and job training.

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