Income Disparity Falls and We're All Worse Off

Discussion in 'Economy' started by expat_panama, Jan 22, 2012.

  1. expat_panama
    Offline

    expat_panama Silver Member

    Joined:
    Apr 12, 2011
    Messages:
    2,461
    Thanks Received:
    252
    Trophy Points:
    98
    Ratings:
    +253
    As long as a rising economic tide kept incomes afloat, concerns about inequality rarely surfaced for long.

    Only after four years in which income disparities actually narrowed a bit — typical of recessions — did last year's emergence of Occupy Wall Street make inequality a big political issue.
    [​IMG]
    But, as the movement's "We are the 99%" slogan comprising almost everyone suggests, what really has people upset is the fact that everyone's slice of the pie, on average, has gotten a bit smaller.

    The nation has now gone through a five-year stretch in which real per capita disposable income has shrunk, the first time that's happened since the demobilization after World War II.

    [snip]

    On a per capita basis, real GDP has gone through six years of zero growth, dating back to the third quarter of 2005. And even that dismal performance depended on trillion-dollar deficits to keep the economy and incomes from sinking.

    The Transfer Economy

    Excluding increased outlays on government social benefits, real per capita personal income, after ups and downs, is almost exactly where it was back in Q1 2001. That reflects sharp job losses in 2008 and 2009 that still have private-sector payrolls mired back at late 1999 levels.

    Increased government transfers are due to the inexorable rise of Social Security and Medicare costs...

    [snip]

    Excerpt. read more at Occupy? Inequality Push Misses Real Problem: Per Capita Income Has Fallen Over Five Years - Investors.com
     
  2. expat_panama
    Offline

    expat_panama Silver Member

    Joined:
    Apr 12, 2011
    Messages:
    2,461
    Thanks Received:
    252
    Trophy Points:
    98
    Ratings:
    +253
    Interesting. Lots of folks look at this thread but nobody argues with it...
     
  3. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    Do you realize that Per CAPITA income is a highly misleading statistic?

    Apparently not.

    Do you want me to show you how that statistic can be so misleading?

    I won't bother unless you really want me to try to educate you.
     
  4. expat_panama
    Offline

    expat_panama Silver Member

    Joined:
    Apr 12, 2011
    Messages:
    2,461
    Thanks Received:
    252
    Trophy Points:
    98
    Ratings:
    +253
    Huh. You're not concerned about income disparity and falling incomes, and the only thing that matters to you is which things I realize.

    OK, I like to think I'm super important but frankly I know better and America's evaporating prosperity is really serious stuff here. Many of us are working hard to get our economy back on track and you're more than welcome to join us as soon as you can tear yourself away from that list you got of things I'm realizing...
     

Share This Page