Paul Krugman nails it: Why we're on DEMOCRATIC Underground

[okaawhatever]

134. I was referring to wealth inequality, not income inequality. Wealth inequality fluctuates more with

large stock market gains/losses. Income inequality is affected by political and governmental plans, but it is heavily influenced by the economy in general. When the economy is booming unemployment is down and workers can get higher wages (laws of supply and demand) the reverse happens when the economy slows down.

While Clinton & Obama's policies helped reduce income inequality and the reverse is true for Republican presidents a good portion of the rise/fall of income inequality came from the economy in general and the law of supply and demand. Clinton & Obama's policies helped improve the economy in general which has a greater effect on workers wages than individual legislation. Ofcourse you need both, but one has to be careful when calculating inequality and assigning the changes solely to the current President.

Due to Obama's administration the economy has improved greatly. Unemployment is down, but it is just now coming down into the range where there will be competition for workers. This competition will create a rise in wages, but that increase will mostly come under the next President. Does that mean if a rube like Rubio becomes President and income inequality drops that his policies were responsible for the drop? No. His policies will likely make it worse in the long term, but the rising wages due to an improved economy will hide the effect of bad Presidential policy.