On 12/19/2012 11:13 PM, meekerdb wrote:
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

I agree! Also the "connections" to get immunity from prosecution helps. ;-) Look at all of the people that made billions selling subprime loans. When was the last time you saw a prosecution of that level of fraud and larceny? Seriously! http://www.publicintegrity.org/accountability/finance/corporate-accountability/whos-behind-financial-meltdown

--
Onward!

Stephen

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