On 12/19/2012 8:41 PM, Stephen P. King wrote:
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
" The Kuznet's theory goes like this: when a country begins developing
its income inequality worsens. But after a few decades when the rich begin
more in the economy and wealth begins to "trickle down," income equalizes
more wealthy then they would have otherwise been. The multilateral financial
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
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.
Did you notice this chart on that link?
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.
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!
In 1983 747 savings and loans failed, costing 90B$. The FBI opened 5490 criminal
investigations and by 1992 839 people were convicted.
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