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Many developed countries have experienced a sharp rise in income inequality during the past three decades, and the United States is no exception (1). For example, the average annual salary in America in inflation-adjusted 1998 dollars increased from $32,522 in 1970 to $35,864 in 1999, that is, a modest 10 percent increase over three decades. By contrast over the same period, the average annual compensation of the top 100 chief executive officers rose from $1.3 million (or 39 times the pay of an average worker) to $37.5 million (or more than 1,000 times the pay of an average worker)(2). Recent trends in wealth inequality have been equally noteworthy. The net worth of families in the top decile rose by 69 percent, to $833,600 in 2001, from $493,400 in 1998. By contrast over the same period, the net worth of families in the lowest fifth of income earners rose 24 percent, to $7,900. The median accumulated wealth …