Radical Markets

The growing gap between the rich and the poor divides communities and fuels conflict. 

All over the world, rich people enjoy ever more luxurious lifestyles, while the poor and middle class stagnate. That growing gap divides communities and fuels conflict. But traditional public policy either ignores or exacerbates the problem. A more just society requires an extreme disruption of the economic system. This disruption could take the form of free market auctions applied to all transactions.

Auctions address the underlying causes of economic disparity and inequality: “decreasing labor income, increasing market power and stagnant economic policy.” These issues have become entrenched in American institutions and policies since the Cold War. Understanding how they affect society should shape the design of new solutions:

• Decreasing labor income – In the United States, the percentage of total income made by the top 1% of earners has risen from 8% to 16% since the 1970s. Most people earn income from wages, but the wealthy get 60% of their income from investments in and profits from companies they own. The problem...