Why is it not enough to look at income inequality when analyzing the effects of economic policies?
Responses
erobinovitz
Because these reforms have also elevated billions of people out of poverty
Posted
Jun 27, 2020
daniel.stalling7_434612
Most of the diagrams used to display inequality are like strait up and down skyscrapers. The effect is really more like a pyramid. As people, and institutions, accumulate wealth, they increasingly require support systems that employ people. Wealth becomes distributed (if somewhat unevenly) throughout the economic system. This increases economic opportunity for large numbers of people who otherwise would continue to be impoverished.
Posted
Nov 1, 2022
rluhring-rml_435540
Granted that lower incomes will rise as the income gap expands, but so will the poverty level. More than a century ago Anti-Trust legislation was necessary to protect society from the abuses of monopolies in oil, steel, banking, etc. Maintaining a middle class economy is important. Please consider the Excessive Salary Tax proposal which I have already sent to the Hoover Institute.
Edward Lazear's essay on skills and income inequality is interesting, but doesn't it assume all skills will have a recognized financial value? Do you think mothers will agree that the value of their past child raising efforts have been properly recognized?
Is the Hoover Institute communicating with the Stanford faculty who are recognized in the September 2021 Stanford magazine article, The Basic Question?
Responses
Because these reforms have also elevated billions of people out of poverty
Most of the diagrams used to display inequality are like strait up and down skyscrapers. The effect is really more like a pyramid. As people, and institutions, accumulate wealth, they increasingly require support systems that employ people. Wealth becomes distributed (if somewhat unevenly) throughout the economic system. This increases economic opportunity for large numbers of people who otherwise would continue to be impoverished.
Granted that lower incomes will rise as the income gap expands, but so will the poverty level. More than a century ago Anti-Trust legislation was necessary to protect society from the abuses of monopolies in oil, steel, banking, etc. Maintaining a middle class economy is important. Please consider the Excessive Salary Tax proposal which I have already sent to the Hoover Institute.
Edward Lazear's essay on skills and income inequality is interesting, but doesn't it assume all skills will have a recognized financial value? Do you think mothers will agree that the value of their past child raising efforts have been properly recognized?
Is the Hoover Institute communicating with the Stanford faculty who are recognized in the September 2021 Stanford magazine article, The Basic Question?
A rising tide lifts all boats.