Rising US Inequality: How We Got Here, Where We're Going
gsb.stanford.edu
Rising US Inequality: How We Got Here, Where We're Going
1–10 of 122 posts
Re: Rising US Inequality: How We Got Here, Where We're Going
#2Other than "We’ve also had a combination of tax and regulatory policy that has encouraged capital formation and increasing returns to capital, so labor’s share of returns has decreased. The last round of tax policy out of Washington made this worse." it seems they have nothing concrete to say. I definitely agree that capital should be taxed at the same rates as labor. Maybe there was a time when it made sense to tax capital lower but right now we don't seem to lack investment money but we lack demand.
Re: Rising US Inequality: How We Got Here, Where We're Going
#3Globalization. And it will get worse. As long as neoliberal technocats continue to foist globalization on us, polarization will continue.
Techies have been spared because round one pitted the US against India, but in reality Indian firms were happy to capture low-hanging fruit and never bothered trying to go head-to-head with US firms. China will be different. They don't want to do our menial work, they want to own markets.
You are not ready to compete with China, unless you are going to do "996" for $50k a year.
Re: Rising US Inequality: How We Got Here, Where We're Going
#4“But the last 50 years have been terrible for people with lower skills. Adjusted for inflation, the average earnings of a man who didn’t go to college is lower now than it was 50 years ago. That’s unheard of.”
How much of this effect is the vastly higher percentage of people who now go to college? If you line up 100 people by vague estimation of their likely earning potential in 1970 and do the same today, but now 2.5 times as many people attend college, the population remaining with "no college" in 2020 isn't really the same population as it was in 1970.
Re: Rising US Inequality: How We Got Here, Where We're Going
#5“But the last 50 years have been terrible for people with lower skills. Adjusted for inflation, the average earnings of a man who didn’t go to college is lower now than it was 50 years ago. That’s unheard of.” How much of this effect is the vastly higher percentage of people who now go to college? If you line up 100 people by vague estimation of their likely earning potential in 1970 and do the same today, but now 2.…
Also, how much of this effect is basically the rest of the world playing catch up in terms of economic production?
China and the rest of Asia are magnitudes more competitive compared to 50 years ago. And prior to that US industry was unmatched thanks to the massive effects world war 2 had on the other, western industrialized nations.
Re: Rising US Inequality: How We Got Here, Where We're Going
#6The credibility of the article is undermined by hyperbolic statements such as, "For a lot of children, when they’re 8 years old, it’s too late. If your parents aren’t engaged in the education system, in 10 years you’ll be competing in the labor market against people whose parents sent them to violin lessons and summer programs in the Dominican Republic. There’s inequality of opportunity."
It's too late for "a lot of children" by age 8? And you're underprivileged if you didn't attend a summer program in the Caribbean?
Re: Rising US Inequality: How We Got Here, Where We're Going
#7I wonder how much effect immigration has had on the matter of inequality.
I'm going off these assumptions:
-> Lesser immigration would've led to a higher GDP/capita figure for US.
-> More resources to subsidize college and lesser cut-throat competition for jobs.
-> Employers would be forced to pay higher wages and people would be more easily to retrain for different jobs.
-> Bonus points: We can help Africa and South american countries with a much higher monetary amount and resources to help them catch up to a developed world status.
Re: Rising US Inequality: How We Got Here, Where We're Going
#8“But the last 50 years have been terrible for people with lower skills. Adjusted for inflation, the average earnings of a man who didn’t go to college is lower now than it was 50 years ago. That’s unheard of.” How much of this effect is the vastly higher percentage of people who now go to college? If you line up 100 people by vague estimation of their likely earning potential in 1970 and do the same today, but now 2.…
Also, how much of this effect is basically the rest of the world playing catch up in terms of economic production? China and the rest of Asia are magnitudes more competitive compared to 50 years ago. And prior to that US industry was unmatched thanks to the massive effects world war 2 had on the other, western industrialized nations.
> Also, how much of this effect is basically the rest of the world playing catch up in terms of economic production?
If the rest of the world becoming more productive results in US workers being worse off, then something is severely wrong with US trade policy. For one, it contradicts the dogma that more trade is strictly beneficial.
Re: Rising US Inequality: How We Got Here, Where We're Going
#9Just look to the 3rd World if you want to know what the US will be like in the future. No middle class, lots of shanty/homeless camps, walls around properties, loss of pretty much all public spaces due to crime and violence.
Sounds like a really great place to be, can't wait.
Democrats and Establishment Republicans did this to us. It didn't have to be like this.
Re: Rising US Inequality: How We Got Here, Where We're Going
#10“But the last 50 years have been terrible for people with lower skills. Adjusted for inflation, the average earnings of a man who didn’t go to college is lower now than it was 50 years ago. That’s unheard of.” How much of this effect is the vastly higher percentage of people who now go to college? If you line up 100 people by vague estimation of their likely earning potential in 1970 and do the same today, but now 2.…
Yep. And even the people with college will necessarily compare less favorably with that older cohort over time.
In a world where everyone has a college degree, well, some people with college degrees will have to be the ditch diggers so to speak.
I don't know how you solve that problem? It's just math.