Obama talks income inequality, blames the GOP

What used to be a value even to the Democratic Party has now become a forgotten lesson: it’s impossible to control the economy by decree.

According to President Barack Obama, he is perfectly capable to, as a president, fight income inequality and actually stop it. Leaving things alone, President Obama said during ABC’s Sunday “This Week” program, can “accelerate these trends (growing income inequality).” The President was also quick to note that technology, globalization and the GOP’s opposition to his personal agenda are all responsible for the growing income gap between the wealthiest and the poorest Americans.

For Obama, the government must intervene in the economy during the recovery in order to promote income equality and ensure the poorest among us have an easier time climbing the income ladder. The President highlighted his goals, which include increase funding for research, education and infrastructure. He also reported to be interested in reforming the tax code in order to keep companies from leaving the country.

While the Democrats continue to push for more federal spending in order to artificially stimulate the economy and boost particular industries, some conservatives and libertarian-leaning Republicans continue to stress the importance of removing barriers to private profit-making in order to promote prosperity, which also means downsizing the scope of the government. While incorrectly assessing the source of the country’s economical problems, President Obama claimed that “no serious economist out there… would suggest that, if you took the Republican agenda of slashing education further, slashing Medicare further, slashing research and development further, slashing investments in infrastructure further, that that would reverse some of these trends of inequality.”

Unfortunately, Obama benefits from the public’s unfamiliarity with economics by justifying the increase in the participation of the government as a way to address the wealth gap problem. What the public might be failing to recognize is the true unaddressed issue behind the income inequality trend Obama likes to talk about: income mobility, which can be described as the degree to which the poorest among us can earn their way out of poverty.

When the rich become richer, they are able to buy political influence, but that’s only true because politicians are in the business of steering the economy.

The real problem is not the income gap, but how politics make it possible for the wealthiest to stay on top and earn more and how everyone could be better off if the President and other politicians left the economy alone.

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