Depending On Your View, Income Inequality Is Either Not A Problem Or Hardly a Problem

Greg Mankiw highlights the nub of Ben Bernanke's speech yesterday on income inequality. He throws in a constrasting view from Jabba the Economist. The resolution, he claims, is a philosophical one, between the views of Rawls and Nozick. Why these are the only two visions on the menu is a good question, but let's overlook that for now. Even if you take the view that intrinsically looks more askance at inequalities, the Rawlsian view, it would not seem that income inequality is a basis for claiming significant injustice exists in our society today. At least, if you give this any credence:

"I am not ready to condemn an economy on the evidence of inequality, especially where the poor are constantly doing better."