social spending?

On Fri, Feb 24, 2012 at 10:20 PM, Eugene Coyle <[email protected]> wrote:
> Germany's economy has been doing fairly well in Europe and internationally.
>
> Wages have been held down.  And, yet, the ratio of the highest income decile
> to lowest is very small, compared to other countries.
>
> According to calculations by Michael Spence, published by the Council on
> Foreign Relations, the ratio of the income of the richest 10% to the poorest
> 10% in Germany was 6.9, compared with 15.9 for the USA.  Sweden's was 6.1
> but all the other countries Spence listed were much higher.
>
> So if the wages were low and the income of the richest was not at a much
> higher ratio, where was the money going?
>
> Spence also gives the ratios for the richest 20% / poorest 20% and a similar
> relative result shows up.
>
> Here's Spence's table.  Where does the income go in Germany?    Or am I not
> understanding this at all?
>
>
> Table 2. Measure of Income Distribution in Selected Economies
> Country Gini Coefficient R/P 10% R/P 20%
> Israel 39.2 13.4 7.9
> United States 45 or 40.8 15.9 8.4
> China 41.5 21.6 12.2
> United Kingdom 34 13.8 7.2
> Germany 27–28 6.9  4.3
> Sweden 23 6.1 3.9
> Brazil 57 51.3 21.8
> India 36.8  8.6   5.6
> Source: Author’s compilation. R/P 10 percent means the ratio of the average
> income of the richest 10 percent
> is to the poorest 10 percent.
>
>
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-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

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