Synopsis

Why some people are rich and others poor can be explained in a number of ways. Income and Wealth focuses on "who" gets "what" and "why." The who are those in the top, middle, and lower income groups. Why they are there is a function of a variety of factors, including education, employment, saving, investing, and taxation. What they get is cash income, leisure time, property, and other forms of wealth. This volume explains the dynamics of income generation, how it is measured, and how such dramatic disparities in distribution come about. Citing numerous cases of distortion in the popular press, and among academics, policymakers, and pundits, Reynolds exposes many popular myths concerning income and wealth, and presents a balanced perspective on this critical aspect of economics and social policy.

The book first defines various characteristics of income, with an emphasis on the gap between the rich and the poor, and reviews several theories to explain the disparities. Subsequent chapters focus on such timely topics as the "vanishing" middle class and the sky-high salaries of CEOs, Hollywood stars, and athletes. The final chapters consider the implications of policies, such as the minimum wage, taxes, immigration, and trade quotas, and expand the discussion to consider international comparisons. Featuring graphs and charts, a glossary of key terms, and a listing of references and resources, Income and Wealth explains the intricate, and often controversial, effects of economic policies on individuals, families, and communities. Moreover, it demonstrates how the numbers can be manipulated by policymakers, pundits, journalists, and academics to promote various agendas, and shows readers how to recognize hyperbole and make better-informed decisions.

Biography

ALAN REYNOLDS is a Senior Fellow at the Cato Institute and was formerly Director of Economic Research at the Hudson Institute. He served as Research Director with the National Commission on Tax Reform and Economic Growth, as advisor to the National Commission on the Cost of Higher Education, and as a member of the OMB transition team in 1981. His studies have been published by the Organization for Economic Cooperation and Development, the Joint Economic Committee, the Federal Reserve Banks of Atlanta and St. Louis, and the Australian Stock Exchange. Author of The Microsoft Antitrust Appeal (2001), he has written for numerous publications since 1971, including The Wall Street 4ournal, The New York Times, National Review, The New Republic, Fortune, and the Harvard Business Review. A former columnist with Forbes and Reason, his weekly column is now nationally syndicated.