“But rising income inequality explains, at best, half of the increase in the rich-poor academic achievement gap. It’s not just that the rich have more money than they used to, it’s that they are using it differently. This is where things get really interesting. High-income families are increasingly focusing their resources — their money, time and knowledge of what it takes to be successful in school — on their children’s cognitive development and educational success. They are doing this because educational success is much more important than it used to be, even for the rich.”

“What is news is that in the United States over the last few decades these differences in educational success between high- and lower-income students have grown substantially. We are still talking about this despite decades of clucking about the crisis in American education and wave after wave of school reform. Whatever we’ve been doing in our schools, it hasn’t reduced educational inequality between children from upper- and lower-income families. Part of knowing what we should do about this is understanding how and why these educational disparities are growing.”

“We need to start talking about this. Strangely, the rapid growth in the rich-poor educational gap provides a ray of hope: if the relationship between family income and educational success can change this rapidly, then it is not an immutable, inevitable pattern. What changed once can change again. Policy choices matter more than we have recently been taught to think. So how can we move toward a society in which educational success is not so strongly linked to family background? Maybe we should take a lesson from the rich and invest much more heavily as a society in our children’s educational opportunities from the day they are born. Investments in early-childhood education pay very high societal dividends. That means investing in developing high-quality child care and preschool that is available to poor and middle-class children. It also means recruiting and training a cadre of skilled preschool teachers and child care providers. These are not new ideas, but we have to stop talking about how expensive and difficult they are to implement and just get on with it.”

“Making the rich poorer does not make the poor richer, but it does make the state stronger—and it does increase the power of officials and politicians, power more menacing, more permanent and less useful than market power within the rule of law. Inequality of income can only be eliminated at the cost of freedom. The pursuit of income equality will turn this country into a totalitarian slum.”

“What is scarce is money. The lack of money to spend on goods is what keeps the unemployed resources from producing more goods. Work, moreover, instead of being a curse, is desired more than anything else because the alternative is not enjoyment of leisure but the suffering of unemployment and deprivation. Of course, if people could get income without they would not object too much (although their self-respect in feeling they are useful members in society who are earning their income is too easily underestimated). But it is only by finding work they can obtain the necessary income they need.”

“If it makes sense to transfer income from rich to poor people within a generation, why shouldn't we transfer income from rich to poor generations?”

“Over short periods, the relation between growth in money and growth in nominal income is often hard to see, partly because the relation is less close for short than for long periods, but mostly because it takes time for changes in monetary growth to affect income. And how long a time is itself variable. Today's income growth is not closely related to today's monetary growth; it depends on what has been happening to money in the past. What happens to money today affects what is going to happen to income in the future”

“Income inequality is increasing, and you might ask yourself: 'Why is that?' Well, that's what income does.”

“A developed country is not a place where the poor have cars. It's where the rich use public transportation.”

“McKinsey and Company has a new study that shows that the persistent gap in academic achievement between children in the United States and their counterparts in other countries deprived the U. S. economy of as much as $2.3 trillion in economic output in 2008 alone. Can we imagine how much that academic gap has cost us in potential income?”