"Increasing inequality in income distribution in this country has broader policy implications, and there is also the growing problem of perverse incentives that result from executives receiving grossly disproportionate compensation based on decisions they themselves take"

This quote by Barney Frank speaks with the growing problem of earnings inequality in the United States. He mentions that this inequality has significant ramifications for policy, which it produces a system of perverse rewards for executives. Executives are receiving big quantities of compensation based on decisions they make, which can cause a circumstance where they are incentivized to make decisions that benefit themselves instead of the company or the general public. This quote highlights the requirement for policy changes to deal with the growing issue of income inequality and to ensure that executives are not receiving out of proportion settlement. It likewise functions as a tip that earnings inequality has far-reaching implications and should not be ignored.