Study how strong economies keep inequality at bay

High earners in rich countries earn many times more than their counterparts in poorer ones, not because they are smarter or better educated but because they live in an economy that has better-organised firms, technology, infrastructure, institutions and government - products of collective actions taken over generations.

It is fair that they give back to society to help create a less unequal society.

We should try to decipher the mysteries around the more successful European economies.

Why have these countries been able to combine high levels of economic performance with low levels of inequality?

Why are their citizens willing to accept high tax rates to finance their generous social programmes?

We may well have more choices than we think.

Wong Horng Ginn

A version of this article appeared in the print edition of The Straits Times on May 25, 2018, with the headline 'Study how strong economies keep inequality at bay'. Print Edition | Subscribe