Summers gives three idea – here are the bullets. For details see FT:
What then is the right response to rising inequality?
First, government must be careful that it does not facilitate increases in inequality by rewarding the wealthy with special concessions.
Second, there is scope for pro-fairness, pro-growth tax reform.
Third, the public sector must insure that there is greater equity in areas of the most fundamental importance.
At the same time, in many parts of the country a gap has opened between the quality of the private school education offered to the children of the rich and the public school educations enjoyed by everyone else. Most alarming is the near doubling over the last generation in the gap between the life expectancy of the affluent and the ordinary.Neither the politics of polarisation nor those of noblesse oblige will serve to protect the interests of the middle class in the post-industrial economy. We will have to find ways to do better.
He does address the over-confidence in trickle down in original post