Why has inequality grown?

Hubmer, Krusell & Smith have an answer:

"We find that the significant drop in tax progressivity starting in the late 1970s is the most important driver of the increase in wealth inequality since then"@nberpubs#EconTwitterhttps://t.co/gGaxu7wxIG pic.twitter.com/TiHN1dq3DX

— Erik Brynjolfsson (@erikbryn) November 16, 2020