Economic inequality in America is often misunderstood. The U.S. economic system is already redistributive, with tax policies and social welfare programs reducing inequality. Wealthy individuals typically earn their wealth rather than inherit it, and many provide goods and services that benefit society. People can move up and down the income ladder, and few fortunes last for multiple generations. There is little connection between inequality and poverty, and government intervention may not always reduce inequality effectively. Instead of focusing on inequality, policies should aim to reduce poverty directly.