Tyler Cowan proposes an interesting take on global
income inequality. Is it more important that members of a particular nation resemble each other in wealth, or that poverty is decreasing globally at the same time that differences in average wealth among nations are shrinking? It's possible that the process of raising a country's standard of living (the average standard as well as the standard for its poorest citizens) also results in a large new group of extraordinary winners in that same country. The gap in wealth between close neighbors increases, but the poorest neighbors are less threatened with poverty and untreatable disease, while whole areas of the globe previously left out of the explosion in material prosperity over the last few centuries begin to catch up.
How much harm are we willing to do globally in order to eliminate the gap between rich and poor in a series of individual countries? It gets back to the old question: is this about compassion or outraged envy?