ABSTRACT
For the past three decades, many have watched with growing unease as economic inequality in the US and the world has risen steadily. Nonetheless, economists have not agreed on how to respond. Given that it is deeply imbedded in mainstream neo-classical economic theory that there is an unavoidable trade-off between equity and efficiency, economists have been cautious in their response for fear that imposing measures to halt the growth of inequality will cause greater economic harm. Social economists have generally agreed that the so-called conflict between equity and efficiency is a false dichotomy. However, they also have not come to a consensus regarding remedies.
