Thursday, October 04, 2007

Greenspan on Inequality

The Free Exchange (a blog hosted by the Economist) quotes Alan Greenspan on reducing income inequality:

"We ought to be opening up our borders to skilled labour from all parts of the world because if we were to do that we would increase the supply of skilled workers that our schools have been unable to create and as a consequence of that we would lower the average wage of skills and reduce the degree of income inequality in this country."

Such a policy would have the effect of reducing inequality but not growth.

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