On 12/19/2012 7:36 PM, Craig Weinberg wrote:
On Wednesday, December 19, 2012 12:47:26 PM UTC-5, rclough wrote:
Hi Craig Weinberg
http://it.stlawu.edu/~pomo/mike/kuznet.html
<http://it.stlawu.edu/%7Epomo/mike/kuznet.html>
" The Kuznet's theory goes like this: when a country begins developing
economically,
its income inequality worsens. But after a few decades when the rich begin
investing
more in the economy and wealth begins to "trickle down," income equalizes
and people
are
more wealthy then they would have otherwise been. The multilateral financial
institutions
which have adhered to this theory, namely the IMF
<http://www.foe.org/global/imfund/imf.html>, enforce structural adjustment
progams (SAP's) on heavily indebted third world countries which drastically
worsen
socioeconomic inequalities.
So I think the gini coefficient is largely a historical number,
where presumably avg pp income increases with time.
So you have to look at avg income as well.
The Kuznet inverted U curve below shows that g is low for
rural or under- developed situations such as Iran
and Greenland, where the avg income is low.
It reaches a peak when under industrializatyion, and
finally, in serice economies. wher income is the highest,
it automatically decreases again.
http://www.unc.edu/~nielsen/special/s2/s2.htm
<http://www.unc.edu/%7Enielsen/special/s2/s2.htm>
Did you notice this chart on that link?
http://www.unc.edu/~nielsen/special/s2/hs12003a.gif
There is no shade of black that is white, sir. I know you mean well, but I have lived in
the US for 44 years and I can tell you that it has gotten worse every decade - in
California, in Colorado, and in North Carolina. People who were middle class are now
economically abandoned while worthless monopolies capitalize on enormous economies of
scale to own more and more and more. Can't you see that? Can't you tell?
I don't think it's economies of scale. Inequality in the U.S. has been driven by two
things. One is the opening up and industrialization of India and China with huge low wage
labor pools. This has made it more economical to build factories there to sell products
here. The second is the financialization of the U.S. economy. Most of the really rich
make their money by moving money around. There aren't millions of jobs moving money, it
can be done by a few people with computers and the right education and family connections
to get the jobs.
Brent
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