1)Are cross-country comparisons of economic policies inevitably open to interpretation, or can we draw firm conclusions from them?

2)Which economic policies and government regulations have contributed to the increasing concentration of wealth in the U.S.?

1)Yes, cross- country comparisons of economic policy are analyzed and interpreted on the international level. This comparison helps to estimate the effectiveness of the policy by estimating the growth of the economy, improvements in various fields such as education, unemployment, and the poverty state of the countries in the world.

Through the global competitiveness index, ranks are given to the countries on the basis of their performance in reducing macroeconomic problems. Conclusions about the pace of the progress can be estimated through cross-country comparisons.

2)The economic policies and regulations of a country reflect on the economic growth of that country. Economic policies are put forth to increase the development and growth in various sectors, ranging from manufacturing to education to health. Different monetary and fiscal policies are used to reduce the economic fluctuations in the country. Government regulations are basically the rule of law which are required to be followed.

There can be many reasons behind the increasing concentration of wealth in the United States. The significant contribution to this are the economic policies and government regulations that are implemented in the U.S.; specifically, strict and disciplined monetary and fiscal policies are implemented. The methods like the balanced regulation of money prices, providing substantial employment opportunities, reduction in taxes, and higher government expenditure to maintain higher aggregate demand are used while implementing the monetary and fiscal policy. These policies induce high economic growth and output, increasing the overall income in the country, increasing the concentration of wealth in the country.

Another reason can be that the U.S. has a capitalist economy. In the U.S., consumption is and investments are massive, which tends to lead to the economy booming. Also, the consumption-to-saving proportion is quite large, which increases the money supply, inducing higher aggregate demand, and increased incomes in the country. Since they're a capitalist economy, the money helps in creating more money through huge investments, and when appropriate economic policies are used in this type of economy, the profits increase in the economy.