This The Economist article invokes Thomas Piketty’s “Capital in the Twenty-First Century the issue of income inequality in developed nations is not a uniquely American problem and may have more to do with the structure, prevalence and pay schemes of large corporations than simply a not too steep progressive system of taxation. Piketty makes the point that in America and Britain, the countries’ largest firms have grown in number of workers by about 50%. And while the expected dynamic of pay would be that workers at larger firms get paid proportionally more than workers at smaller firms; the case is that lower-end workers get paid not significantly more than those workers at smaller firms, while top brass get paid much, much more. Piketty’s proposal is that a solution for income inequality is not to redistribute wealth out of the hands of large corporation’s high earners, but to increase completion and thereby stifle the rapidly growing corporations.
Source: The bigger, the less fair