The True Measure of Economic Inequality

Inequality and what to do about it figure prominently in political debate in the U.S. and Europe. A clearer view of the problem and the possible remedies would be valuable -- and a new study by Alan Auerbach, Laurence Kotlikoff and Darryl Kohler helps. It shows the hazards of jumping to conclusions about inequality, and also highlights some pernicious effects of America's convoluted tax-and-benefit system.