Is Income Inequality Solved by the Tax and Transfer?

Everyone would agree that income inequality is a problem. But what is the solution?

Thomas Piketty would argue in his book Capital in the Twenty-First Century that the solution to the obvious income stratification is “a global system of progressive tax and transfer to create greater equality and avoid concentration of wealth in the hands of the few.”

But Dr. David Cowan, author of Economic Parables: The Monetary Teachings of Jesus Christ, disagrees. He wrote in an article “The Spiritual Reflection of Economic Inequality” for The Center for Christian Business Ethics Today, “By all accounts, the book is well researched in terms of the data, but like Marx himself, having understood the problem, he is fantastically wrong about the solution.”

Cowan argues that the solution actually lies in promoting policies that support entrepreneurship, not “hollow idealism.” But while disagreeing with Piketty’s solution, Cowan does not deny the problem of inequality.

He believes that the economy is “a reflection of our human endeavors and puts a number on what we are really like… We do not treat each other equally, and this shows up glaringly in the economy, it puts a number on it.”

He does not think the answer to income inequality lies in taxing, but that we must look to ourselves and to the teaching of Jesus Christ.

He continues this argument in his book Economic Parables: The Monetary Teachings of Jesus Christ. To read more of Dr. David Cowan’s writing, read the article here, and check out his book.




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