Instructions

Read carefully the following article:

INTERNATIONAL PERSPECTIVE "Income Inequality Is Not Rising Globally. It's Falling." by Tyler Cown, NYT, JULY 19, 2014.(Links to an external site.)

https://www.nytimes.com/2014/07/20/upshot/income-inequality-is-not-rising-globally-its-falling-.html

Then answer the following questions based on that article:

Q1/We learn in this article that, contrary to earlier economic predictions, there is now evidence that the increase in Chinese exports has had a [ Select ] ["downward", "upward"] pressure on the wages of some segments of American middle class. At the same time these export increases, most likely [ Select ] ["increased", "decreased"] the incomes of the wealthy top 1% of Americans.

Q2/Tyler Cowen argues that

a/capitalism generates wealth but this wealth always goes to the rich, thus increasing inequality.

b/capitalism will necessarily lead to civil unrest and possibly a revolution.

c/economic growth and capitalism are incompatible.

d/capitalism and economic growth are the most effective economic equalizers in the world.