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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