Inequality and the future of capitalism

In 1831, French sociologist Alexis de Tocqueville made his famous journey to America, and returned home to report that "nothing struck me more forcibly than the general equality of conditions among people."

That was a time when the United States was the world's most egalitarian society. Wages in the young nation were higher than in Europe, and land in the West was abundant and cheap. There were rich people, but they weren't super-rich, like European aristocrats.

[File photo: IC]

Today, things are completely different. Some economists estimate the top 1 percent of Americans own 40% of the nation's wealth. Wages for workers have been largely stagnant for a generation, while CEO pay has skyrocketed. A small number of firms dominate many sectors of the economy.

How did the United States go from being the most egalitarian country in the West to being one of the most unequal?

Is inequality an unavoidable byproduct of capitalism?

And what is the best way to address this growing gap?

Joining our discussion today:

Branko Milanovic, visiting presidential professor at the Graduate Center of the City University of New York, and former lead economist in the research department of the World Bank.

John Campbell, Professor with the Department of Sociology at Dartmouth College.

Dr. Edward Lehman, Managing Director of LEHMAN, LEE & Xu Law Firm

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