Historian Niall Ferguson devotes his latest Newsweek column to an examination of income inequality in the United States.

Like left-of-center political critics, Ferguson buys into the notion of growing income inequality, though he notes in one throwaway line that the share of total income going to the top 1 percent of families has fallen since 2007. (That fact has attracted more attention elsewhere.)

Ferguson also agrees with liberal critics that income inequality is a problem. But he doesn’t leap to their big-government solutions.

So what is to be done to heal the rift between Rich America and Poor America? There are two obvious problems with the standard liberal prescription of increased welfare spending, financed by higher taxes on the rich. The first, as Murray points out, is that the welfare programs of the Great Society era were in many ways the cause of the breakdown of social order in working-class America.

The second is that this is a very strange time to want to import the European welfare state, with its aspiration to provide everyone with comfort and security from the cradle to the grave. In case you hadn’t noticed, that system is currently on the brink of fiscal collapse in its continent of origin.

[Charles] Murray’s conclusion is that Americans need to steer clear of Europe and instead get back to their roots. We should scrap the institutions of the New Deal and Great Society and replace them with the system of guaranteed basic income he first proposed in In Our Hands (2006). And we should pin our faith on the four traditional pillars of the American way of life: family, vocation, community, and faith. These, Murray argues, were the true foundations of the American project, from Kennedy all the way back to Washington. …

… As Murray shows, there is a conservative solution to the problem of inequality. Scrap the failing welfare programs of the ’30s and ’60s before they bankrupt America. Ensure that everyone has a basic income. Then simplify the tax code to restore the incentives that used to exist for everyone to work hard. Finally, end the state monopolies in public education to launch a new era of school choice and competition.