Americans Must Decide which Economic Vision They Will Pursue

For the last several years, the United States has debated the merits of two clashing economic visions.  The first holds that increased national economic growth has the potential to benefit all, even if it contributes to income disparities.  The second takes a view of economic growth that is closer to a zero-sum view: one person’s economic growth is at the expense of another, and one country’s growth is at the expense of another.

A person who embraces the second view is likely to favor policies that redistribute wealth, with Western Europe serving as a model.  In contrast, a person with the first view is likely to focus on a person’s absolute economic standing rather than their standing relative to other Americans.  Under such a view, a person making $100 in 2010 is better off if he now makes $105, even if wealthier people have seen much greater increases in wealth over the same period.