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Inequality Without Class

dissentmagazine.org

131–140 of 160 posts

Re: Inequality Without Class

#131

Earlier quoted context omitted.

>>> At any given time are there, or are there not, finite goods and services? >> At one given instant sure > Wrong, wealth is not finite Perhaps you could make up your mind. > Yes, people who lived in preindustrial societies saw more or less fixed living standards for generations. But fortunately for us, we live in one of the most economically dynamic points of in all of human history [1]. Your statement does ring tr…

At any one given instant in time, the planets have just one position around the sun. Does that mean orbital paths are a lie? The amount of carbon dioxide in the atmosphere at any one point in time is fixed. At a particular instant in time, there is an exact number of CO2 molecules in the atmosphere. And that number is fixed and doesn't change, unless you pick a different timestamp. Does that mean we can just keep bur…

> Seriously, I can't believe how much time I've wasted on this.

Then let's cut out fanciful stories of the planets and the birds and the bees and cut to the chase.

In the 8 years between its IPO and Elon Musk taking it private again, Twitter (now X) made a profit in only two, according to Wikipedia. Meanwhile according to Glassdoor it has a median total comp for a Twitter Software Engineer in SF at $250k. But the median restaurant worker in SF makes about $40k according to Ziprecruiter. All of these people, Twitter engineers and regular restaurant workers, are generally competing for housing in the Bay Area. Tell me. Who's typically going to win those bids for housing, the Twitter engineer or the restaurant worker?

Re: Inequality Without Class

#132

Earlier quoted context omitted.

At any one given instant in time, the planets have just one position around the sun. Does that mean orbital paths are a lie? The amount of carbon dioxide in the atmosphere at any one point in time is fixed. At a particular instant in time, there is an exact number of CO2 molecules in the atmosphere. And that number is fixed and doesn't change, unless you pick a different timestamp. Does that mean we can just keep bur…

> Seriously, I can't believe how much time I've wasted on this. Then let's cut out fanciful stories of the planets and the birds and the bees and cut to the chase. In the 8 years between its IPO and Elon Musk taking it private again, Twitter (now X) made a profit in only two, according to Wikipedia. Meanwhile according to Glassdoor it has a median total comp for a Twitter Software Engineer in SF at $250k. But the med…

Sure, the tech workers are going to be able to afford better housing. But what happens if tech workers move out, and stop generating revenue for the city? Life would be even worse. That restaurant worker may lose their job because there's not as many customers. The city will have to raise taxes or cut services to make up for the budget shortfall from the exodus of higher paid (and thus higher tax paying) residents. This isn't speculation, this is actively happening: https://www.sfexaminer.com/news/politics/san-francisco-budge...

This is one of the more pernicious aspects of zero sum thinking: people engaging in zero sum thinking assume that reducing the wealth of some people means it'll end up redistributed to others. The reality is that it often just results in everyone being worse off.

Re: Inequality Without Class

#133
post #96

Earlier quoted context omitted.

If your argument is that we should aim to raise absolute living standards, then I agree with it. If your argument involves accepting 1100s living standards as acceptable, I disagree with it. The conditions in the 1100s are only acceptable as far as they led to the improvements found in the present. We don't need to compare to them to usefully make judgements about the present. It is a baseline that everyone should ha…

Neither of those is my argument and it's quite obvious you're arguing in bad faith. Here's my argument restated: " inequality is a far stronger contributor to unhappiness than absolute wealth." This is an empirical fact, not a belief or a wish about the way the world ought to work, and it overrides your belief/wish that people "should" just care about absolute living standards. You said, "there is no reason to believ…

> Here's a simple question: was every person in the 1100s woefully depressed/anxious/angry to a far greater degree than any modern first-worlder dissatisfied with their station in life?

Again, I like the logical rigour in your argument. The only problem you have is that the underlying point is stupid. The answer is yes. The 1100s is woefully depressing/anxiety inducing/infuriating compared to the modern first world. Nobody would choose to go back to the 1100s. Trying to defend that position is dumb and a disservice to the very real problems in the present caused by low real living standards. There is an urgent and pressing need to get poor people (indeed, all people) cheap energy, more goods and better services. Telling them that they'd have had to suck it up and cope in the 1100s isn't a path to good outcomes.

I think you're probably trying to make a point about hedonistic adjustment? It isn't a bad point in the abstract but it doesn't work in this argument. The people who account for that usually end up taking vows of poverty or Epicurean-style hedonism. Which is cool and all but the logical end of that philosophy is maximising inequality. The wealthy are still wealthy but the adherents are as poor as they can manage because they'll be happy regardless of what inequality is present.

> This is quite literally incorrect. This has been studied.

You've asserted that twice, but I'm pretty sure you're wrong. A fairly cursory glance at reality and the literature suggests that people can't actually detect inequality with any reliability [0, 1] and I don't think people are at all consistent on defining what the word means. It is hard for the average person to get worked up about something they can't detect. You have no idea how equal we two are, for example. And even among peers in meatspace it's a struggle to estimate any real metric - credit is a huge confounder.

People do get worked up by being in a lower class or in an unpleasant spot in the status hierarchy - but that isn't inequality as much as 10% of the population is going to be in each decile as a statistical matter of fact. It isn't possible to change that.

[0] https://www.sciencedirect.com/science/article/pii/S2590051X2... - "Moreover, and somewhat surprisingly, the reality is contrary to people’s perception since low (high) actual income inequality in the region is often reflected in its overestimated (underestimated) perception." is a choice tidbit.

[1] https://journals.sagepub.com/doi/full/10.1177/07311214211062... - Leads with "While some scholars suggest that awareness of income inequality is strongest when the actual level of inequality is high, others find that individuals’ awareness of income inequality is largely unresponsive to actual inequality"

Re: Inequality Without Class

#134

Earlier quoted context omitted.

> Seriously, I can't believe how much time I've wasted on this. Then let's cut out fanciful stories of the planets and the birds and the bees and cut to the chase. In the 8 years between its IPO and Elon Musk taking it private again, Twitter (now X) made a profit in only two, according to Wikipedia. Meanwhile according to Glassdoor it has a median total comp for a Twitter Software Engineer in SF at $250k. But the med…

Sure, the tech workers are going to be able to afford better housing. But what happens if tech workers move out, and stop generating revenue for the city? Life would be even worse. That restaurant worker may lose their job because there's not as many customers. The city will have to raise taxes or cut services to make up for the budget shortfall from the exodus of higher paid (and thus higher tax paying) residents. T…

> But what happens if tech workers move out, and stop generating revenue for the city? Life would be even worse.

No, a different mix of workers will move in. If they flatten the income distribution then life will be better for the non-tech workers who already live here. San Francisco's economy wasn't always so focused on tech, just as other vibrant cities in the U.S. aren't so focused on tech.

> That restaurant worker may lose their job because there's not as many customers.

The different mix of workers that would move in may go to restaurants just as much, and if they don't then sure, some restaurants will go out of business. So what? Some of the restaurant staff can adapt to other jobs, and they'll have longer to do so because their rent won't be so high.

> This isn't speculation, this is actively happening: https://www.sfexaminer.com/news/politics/san-francisco-budge...

That article doesn't even mention tech. What it says is:

  The snowballing shortfall is primarily caused by formerly reliable streams of revenue — namely, taxes generated by tourism and a once-thriving downtown — sputtering amid the post-pandemic recovery.
Sure, the once vibrant Manhattan-like downtown is now a ghost-town, but that's largely due to remote work to which the tech sector is acutely vulnerable. Ironically the City actually would've been buttressed against the remote work sea change had it had a more diverse, less tech-dependent economy.

> This is one of the more pernicious aspects of zero sum thinking: people engaging in zero sum thinking assume that reducing the wealth of some people means it'll end up redistributed to others. The reality is that it often just results in everyone being worse off.

If reducing the wealth of some people and creating a flatter income distribution "just results in everyone being worse off" then evidently increasing the wealth of some people and creating a skewed income distribution will have the opposite effect. Suppose you lived in a place and a time with a highly-skewed income distribution with severe winners and severe losers and you're the loserest loser of them all. Suppose as luck would have it everyone else makes more money than you do. Evidently that would "just result in everyone being [better] off" even you, right? In that case, you should be thrilled with that arrangement. What do you say? Would you be thrilled to have the lowest income in your city?

Re: Inequality Without Class

#135
post #33

Earlier quoted context omitted.

> Buyers get a tax credit for electric cars. SolarCity received hundreds of millions of dollars in direct grants from different state governments, I believe this all went to Tesla. Those cars wouldn't have been made or bought without those grants, the grants offset the extra cost of electric cars so they didn't put money into anyone's pockets, its just the government investing in getting electrification happen earlie…

Sure. But acknowledging the source of the investments would be swell. And it's a bit cheeky to be vehemently against govt and taxes after being one of the largest beneficiaries of said govt.

Yep! It's not a bad thing at all, it just ought to be acknowledged.

Re: Inequality Without Class

#136

Earlier quoted context omitted.

> It is zero sum: there are finite goods and services in the world, and we're all competing for them. Zero-sum (or fixed-sum, since zero-sum strictly means the aggregate quantity is not only fixed and finite but actually zero) doesn't just mean the total is finite (which is obviously correct), it means that output is fixed and the choices made only affect distribution, not the quantity of goods and services that are…

Yeah but the material conditions of an individual's life are determined by the goods and services they have, not by the total amount of goods and services that exist in the world. Moreover, certain material conditions--safety from harm, freedom of expression, and the political power to maintain those things--absolutely do not increase in some global sense the way that economic output does. Consequently, it's the dist…

> Yeah but the material conditions of an individual's life are determined by the goods and services they have, not by the total amount of goods and services that exist in the world.

That's obviously why distribution matters as well as total production (or aggregate utility), but fixed-sum means that distribution is the only thing subject to change, and that for someone to gain someone else must lose equally. (There's also an argument that things get closer to fixed sum in utility terms if you first lift everyone out of extreme poverty, because relative wealth/deprivation becomes a much more significant source of utility/disutility than absolute wealth is of utility once you are beyond extreme poverty, but even there its much more complex than fixed sum.)

> Moreover, certain material conditions--safety from harm, freedom of expression, and the political power to maintain those things--absolutely do not increase in some global sense the way that economic output does.

They certainly don't increase in lockstep with economic output, either globally or locally, but neither are they fixed-sum, where for someone to have more someone else must have less in the same degree (except maybe "political power").

Re: Inequality Without Class

#137
post #55

Earlier quoted context omitted.

I like your comment because it was logically consistent and there is actually an argument in there that I respect. However, you appear to be saying that the 1100s (where people were, I note, substantially more equal than today in absolute terms) are comparable to 2000s. I disagree - I would be unfathomably depressed/angry/anxious if my living standards reverted to my social equivalent in the 1100s, conditions were ba…

How about this argument? This is kind of how I look at the problem: Would it be OK to have a single individual worth $1e24, while everyone else has the standard distribution of wealth as we know it in 2024? A septillionaire could give $1 trillion to every person on the planet every year for 100 years and still have 99.99% of his money left. How much power and influence over the world would someone like that have, whi…

That is a bad argument - you're starting with an internationally absurd hypothetical and drawing conclusions based on it without drawing it back to the real world on the key points. We need to know what form the wealth is and why it is divided up in such a lopsided distribution before the argument gets interesting. Eg, maybe the septillionaire has a magic coin that everyone agrees is worth one septillion just because. He can't give a trillion dollars to everyone in the world because his wealth is indivisible and apart from the magic coin there aren't any real resources to divvy up. If the "wealth" is money in a bank account a similar problem occurs - if he gives out cash payments, there aren't more real resources so the only thing that happens is lots of inflation. Real living standards might not change.

You can hopefully see the logical issue here with the argument - we can both just pick absurd premises and point out that we could get our preferred moral outcome from them.

Although my hypothetical isn't as absurd as it might seem on its face. Zuckerburg's wealth is divorced from physical goods for example. Facebook's real consumption is only a couple of server farms worth of stuff. We could seize all the servers but it is hard to see what resources could be freed up for better uses in the real world.

> I think we all agree that wouldn't work for a functioning society--we have to have some limit.

No we don't. If the highest living standards (in a for-everyone sense) resulted from infinite inequality, we should go with that.

Re: Inequality Without Class

#138

Earlier quoted context omitted.

Sure, the tech workers are going to be able to afford better housing. But what happens if tech workers move out, and stop generating revenue for the city? Life would be even worse. That restaurant worker may lose their job because there's not as many customers. The city will have to raise taxes or cut services to make up for the budget shortfall from the exodus of higher paid (and thus higher tax paying) residents. T…

> But what happens if tech workers move out, and stop generating revenue for the city? Life would be even worse. No, a different mix of workers will move in. If they flatten the income distribution then life will be better for the non-tech workers who already live here. San Francisco's economy wasn't always so focused on tech, just as other vibrant cities in the U.S. aren't so focused on tech. > That restaurant worke…

> If they flatten the income distribution then life will be better for the non-tech workers who already live here.

This, right here, is the crux of your incorrect worldview. No, a flatter income distribution is not inherently better. Which is better: 90% of people with $60,000 income and the top 10% with $600,000, or 100% of people with an income of $10,000? The latter is flatter, but even the poorest people were still much, much wealthier in the former than the latter.

> Suppose you lived in a place and a time with a highly-skewed income distribution with severe winners and severe losers and you're the loserest loser of them all. Suppose as luck would have it everyone else makes more money than you do. Evidently that would "just result in everyone being [better] off" even you, right? In that case, you should be thrilled with that arrangement. What do you say? Would you be thrilled to have the lowest income in your city?

Again: I care about my own material conditions. If a genie gave me the choice to double my income doubling (in real terms, as in the actual value of goods and services accessible to me doubles), while everyone else's income increases tenfold of course that's be a good thing. Why would I forego an improvement to my own conditions, just to keep everyone else's conditions from improving proportionally more? The fact that others benefit more doesn't change the fact that I'm left strictly better off. To do otherwise is the epitome of the crab mentality: It's better to harm everyone just to maintain your relative position.

Re: Inequality Without Class

#139
post #91

Earlier quoted context omitted.

> Wealthy people pay a lower tax rate than non-wealthy people do. That means the tax system is a net transfer of wealth from the less wealthy to the more wealthy. Try again. Please provide a source. Youre also ignoring the fact that even with a lower rate (which you haven’t proven), they may still pay more overall which benefits society . > Not if my fellow citizen outbids me on an apartment, no, it isn't. So you’re…

> Please provide a source. https://www.whitehouse.gov/omb/briefing-room/2021/09/23/new-... > Youre also ignoring the fact that even with a lower rate (which you haven’t proven), they may still pay more overall which benefits society. Yes. I'm ignoring it because it's not relevant. Think about it. Suppose for the sake of argument 400 people took 99% of the output of the nation (~$23 trillion in 2023), and since we're…

> https://www.whitehouse.gov/omb/briefing-room/2021/09/23/new-...

That's not a source. That's a cherry picked, politically motivated source about 400 billionaires? The average person getting a job at Tesla and competing for your apartment isn't one of them?

Want to try again?

> Except...that leaves the remaining 300 million with a per capita income of less than $1000 per year.

But that's not what's happening. What's happening is someone is getting a job paying a couple hundred thousand at Telsa. And as a result they pay more in taxes.

> "left unemployed" is not the only alternative.

It is in the example I gave. You stated that instead of "losing an apartment" you'd prefer that person never got a job at Tesla.

> Why did you stop beating your wife? https://en.wikipedia.org/wiki/Loaded_question

You refused to answer (you literally stated you won't answer), so I asked why. That's not a loaded question.

Re: Inequality Without Class

#140
post #139

Earlier quoted context omitted.

> Please provide a source. https://www.whitehouse.gov/omb/briefing-room/2021/09/23/new-... > Youre also ignoring the fact that even with a lower rate (which you haven’t proven), they may still pay more overall which benefits society. Yes. I'm ignoring it because it's not relevant. Think about it. Suppose for the sake of argument 400 people took 99% of the output of the nation (~$23 trillion in 2023), and since we're…

> https://www.whitehouse.gov/omb/briefing-room/2021/09/23/new-... That's not a source. That's a cherry picked, politically motivated source about 400 billionaires? The average person getting a job at Tesla and competing for your apartment isn't one of them? Want to try again? > Except...that leaves the remaining 300 million with a per capita income of less than $1000 per year. But that's not what's happening. What's…

>> That's not a source. That's a cherry picked, politically motivated source about 400 billionaires? The average person getting a job at Tesla and competing for your apartment isn't one of them?

> Want to try again? Not particularly, no. You asked for a source for my claim that the wealthy paid a lower rate in taxes, and I gave you one.

> But that's not what's happening.

I know. It's called a "thought experiment." It's designed to explore the implications of reasoning. This thought experiment illustrates that even if the wealthy pay a higher tax rate and/or higher overall taxes, the benefits to society of those taxes do not compensate for the drawbacks of there being rich people in that society.

> It is in the example I gave. You stated that instead of "losing an apartment" you'd prefer that person never got a job at Tesla.

Well, no I didn't state that, but even if I did, "never getting a job at Tesla" does not logically imply "left unemployed." There are other employers besides Tesla.

> You refused to answer (you literally stated you won't answer), so I asked why. That's not a loaded question.

No, I literally said, "No, I presented a different scenario. Sorry for not playing along." That's not a refusal. That's simply me choosing not to engage with your scenario at that time. Who knows! Maybe I'll engage with it later (not likely).

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