Recent research from the NBER shows that extreme incomes are predominantly earned as a function of the exceptional abilities and efforts of skilled entrepreneurs, not by a class of passive capital owners.
What If Ayn Rand Was Right About Entrepreneurs and Inequality?
Interventions designed to reduce inequality need to get the causes of inequality right, or they will do more harm than good. The traditional idea that inequality results from r>g (returns to capital exceeding economic growth) might be completely wrong.
What If Ayn Rand Was Right About Entrepreneurs and Inequality?