About The Growing Income Divide

Discussion in 'Economy' started by Annie, Nov 14, 2007.

  1. Annie
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    Annie Diamond Member

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    Seems it may not be the real deal:

    http://opinionjournal.com/editorial/feature.html?id=110010855

     
  2. BaronVonBigmeat
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    BaronVonBigmeat Senior Member

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    The disparity in incomes does not interest me as much as the fluidity between classes. I forget the saying but it's something about rags to riches to rags in three generations(?). However whatever growing divide we've seen in recent years is probably caused by asset inflation. If you owned multiple properties from 2001-2005 or so, then the fed's money inflation was a great benefit to you. If you were an ordinary family just looking to buy a house, it wasn't so hot.
     
  3. Toro
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    That's an interesting article but it flies in the face of almost every other study, also conducted by non-political economists. Here are a few.

    http://papers.nber.org/papers/w13568

    http://gregmankiw.blogspot.com/2007/11/katz-vs-krugman.html
     
  4. Toro
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  5. Toro
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  6. Annie
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    Annie Diamond Member

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  7. Toro
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    http://online.wsj.com/article/SB119492563733591022.html?mod=todays_us_page_one
     
  8. Toro
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    What is happening is that incomes are growing faster at the top end than at the bottom end. Even after inflation, the poorest have seen a rise in income after inflation. However, that still means inequality is rising.

    Why the Treasury data says different, I don't know, but I am highly suspicious of the idea that the richest 1% are falling, which is what the graph from your OP says. That sure doesn't jive with every other indicator around.

    [​IMG]
     
  9. Toro
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    That's an interesting article but it flies in the face of almost every other study, also conducted by non-political economists. Here are a few.

    http://papers.nber.org/papers/w13568

    http://gregmankiw.blogspot.com/2007/11/katz-vs-krugman.html
     
  10. Annie
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    Annie Diamond Member

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