Steven Kaplan talks with host Russ Roberts about the richest Americans and income inequality. He talks about the composition of the richest 1% and 1/10 of 1%. What proportions come from the financial sector, CEOs from non-financial corporations, athletes, lawyers? How have the incomes of these different groups have changed over time? Kaplan argues that these groups have increased their incomes by similar proportions, suggesting that a failure of corporate governance is not the explanation of rising CEO pay. The discussion closes with a discussion of the financial crisis and the compensation in the financial sector.