The Post endlessly pushes the line that the only way that the government affects the distribution of income is with its tax and spending policy. Of course, these are probably the least important influences. The Fed's emergency loans and the TARP loans (which did not count as spending) ensured that the Goldman Sachs folks and the rest of the Wall Street crew are still incredibly rich. The government's patent and copyright protections make the drug companies and Bill Gates rich. The government's protection for doctors, lawyers and other highly educated professions ensure that they will enjoy relatively high pay at the expense of more moderate income families. The Post might not like the public to think about all the ways that the government affects economic outcomes, but the reality is that tax and spending policy is only one factor.
--Dean Baker