In a recent defense of the 1 percent, Harvard economist Greg
Mankiw admitted it might be bad if the rich got richer by sucking cash from the
economy without giving any value back. A new study suggests many of the rich --
especially bankers and CEOs -- are doing just that. …” the 1 percent are just
richer than you, and getting even richer all the time, because they are better
than you, they deserve it and more….”
Josh Bivens and Lawrence Mishel, economists at the Economic
Policy Institute, a left-leaning think tank, argue in a study responding to
Mankiw that most of the rise in income inequality over the past few decades is
due to the soaring pay of CEOs and Wall Street bankers who are milking money
from the markets rather than generating much in the way of economic production.
"A substantial part of the extraordinary rise of top 1
percent incomes is not a result of well-functioning markets allocating pay
according to value generated, but instead resulted from shifting institutional
arrangements leading to shifting of rents to those at the very top,"
Bivens and Mishel write.
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