– Warren Buffett thinks the poor should stop blaming inequality on the rich (Independent, May 23, 2015):
But Mr Buffett claims that inequality cannot be solved by increases in the minimum wage, from $15 an hour, or through methods like improving the quality of education.His solution is to increase the Earned Income Tax Credit, which the US government currently gives to millions of low-income workers, with the view that as wages increase the payments go down.
Writing that the widening gap is an “inevitable consequence” of an advanced market-based economy, he said that pay first became unequal as not everybody could do the same job anymore.
He said: “No conspiracy lies behind this depressing fact: The poor are most definitely not poor because the rich are rich. Nor are the rich undeserving.
“Most of them have contributed brilliant innovations or managerial expertise to America’s well-being. We all live far better because of Henry Ford, Steve Jobs, Sam Walton and the like.
“It is simply a consequence of an economic engine that constantly requires more high-order talents while reducing the need for commodity-like tasks.”