Unequal incomes, unequal outcomes? Economic inequality and measures of well-being, closing discussion: social policy implications, general commentary

This paper was presented at the conference \\"Unequal incomes, unequal outcomes? Economic inequality and measures of well-being\\" as part of the closing discussion, \\"Social policy implications.\\" The conference was held at the Federal Reserve Bank of New York on May 7, 1999. The author emphasizes that we must do more than simply worry about the effects of poverty on those Americans who fall below some minimum income level. Rather, policy in the future should focus more broadly on the fact that too much inequality of income and wealth is, in and of itself, a serious problem. In the author's view, when the social distance between the highest and lowest income levels is too great, the trickle-down method becomes an ineffective way to reach those at the lowest level. In addition, she argues that too much inequality may undermine the legitimacy of our economic system and the functioning of our political systems.