In the heyday of debates about capitalism versus socialism, a common tactic was to calculate that if all incomes were equal, most people would gain only a trivial amount more. And that was without taking into account effects on incentives. It was therefore better for the ordinary wage earner to place his hopes on rising productivity than on state redistribution.

Where are we now in this debate? Today, the most interesting analysis of income distribution is coming from the US. Many Americans say that the national dream was that each generation would lead a better life than its predecessor; but they are afraid that this will no longer be true of their own children and grandchildren. US left-of-centre journals are full of calculations showing how a middle-income earner would have to work more hours today than five, 10 or even 25 years ago to obtain basic modern necessities.