The Wealth Gap...

caroline01's picture

Inequality, the large and growing gap in wealth, will destroy the U.S. – maybe it already has. These essays and comments sound a clear alarm.

http://www.project-syndicate.org/commentary/re-capturing-the-friedmans

J. Bradford DeLong is Professor of Economics at the University of California at Berkeley and a research associate at the National Bureau for Economic Research. He was Deputy Assistant US Treasury Secretary…

J. Bradford DeLong

Apr. 30, 2012

BERKELEY – On my desk right now are reporter Timothy Noah’s new book The Great Divergence: America’s Growing Inequality Crisis and What We Can Do about It and Milton and Rose Director Friedman’s classic Free to Choose: A Personal Statement. Considering them together, my overwhelming thought is that the Friedmans would find their task of justifying and advocating small-government libertarianism much harder today than they did in 1979.

Comment from Elizabeth Pula

Here's a link to a super little interview that adds a bit of aspects and in depth perspective to DeLong's super little article:

http://www.washingtonpost.com/blogs/ezra-klein/post/how-economists-have-misunderstood-inequality/2012/05/03/gIQAOZf5yT_blog.html

Absolutely excellent analytical report, and methodology report on EPI.org.Written by Lawrence Mishel and Natalie Sabadish-05/02/2012

http://www.epi.org/publication/ib331-ceo-pay-top-1-percent/

The report is comparison of top 350 CEO salaries and options etc. to production workforce since the 1970's and through 2011- As factual as can be available from as reliable sources as possible.

The only problem today is that we are no longer dealing with market economies. There is no egalitarian distribution of income because we are dealing with various systems of organizational rotating exploitation. Economies are only one activity of the systems.

http://www.project-syndicate.org/commentary/more-unequal-than-others

Pranab Bardhan

Pranab Bardhan is Professor of Economics, University of California at Berkeley and the author, most recently, of Awakening Giants, Feet of Clay: Assessing the Rise of China and India.

More Unequal than Others

(The unconscionable and growing economic inequality.)

Generally, economic inequality is easier to justify than racism and other forms of invidious discrimination. A fundamental tenet of American society is that everyone has an equal chance – a belief that appears more plausible with the decline of social bias. In India, this myth is less powerful, but there is a general feeling, shared even by some of the poor, that the rich deserve their wealth because of their merit, education, and skills.

There are two problems with this argument. First, education and skills are not inborn talents. The rich have access to better schools, health care, nutrition, and social support than the poor, which plays a decisive part in later academic and social success. Pre-school children in rich families have better nutrition, health care, and mentoring; there is evidence that much of the brain damage due to malnourishment for poor children may have already, irreversibly, happened by age three. 

Comments

caroline01
caroline01's picture
It just keeps growing.

It just keeps growing.