ABSTRACT

This chapter outlines a few of the more prominent policy proposals being discussed by policy-makers and scholars of inequality. Some are quite controversial and extensive, while others are more widely accepted. The proposals can be grouped into four categories: spreading the wealth—policies aimed at redistributing wealth and income, developing the capacity for self-sufficiency, addressing spatial inequalities and expanding and guaranteeing political representation. As income inequality has increased over time, calls to increase the minimum wage have gained more approbation both domestically and internationally. Low levels of wealth held by the middle and working class, combined with a historically low savings rate, helped make them more vulnerable to the economic dislocations of the Great Recession. Conservatives also stress education as an important means to reduce inequality. One of the greatest threats to any effort to reduce inequality is political system that limits the voices of some and gives more power to others to define political agendas and contribute to social change.