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April 3, 2014

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Latest Posts from Economist's View

Links for 4-03-14

Posted: 03 Apr 2014 12:03 AM PDT

'The Wealth Gap in America Is Growing, Too'

Posted: 02 Apr 2014 09:39 AM PDT

This shouldn't be a surprise:

The Wealth Gap in America Is Growing, Too, by Annie Lowrey, NY Times: It is, by now, well known that income inequality has increased in the United States. The top 10 percent of earners took more than half of the country's overall income in 2012, the highest proportion recorded in a century of government record keeping.
But wealth inequality has been increasing too, as a new study by Thomas Piketty of the Paris School of Economics and Gabriel Zucman of the University of California, Berkeley, shows. In a preliminary report, Mr. Zucman and Emmanuel Saez, also of Berkeley, find that at the very top, wealth is distributed as unevenly as it was in the early 20th century. And the wealthiest 0.1 percent, and especially the 0.01 percent, have left the rest of the 1 percent in the dust. ...

'Same As He Ever Was'

Posted: 02 Apr 2014 09:32 AM PDT

More on the Ryan budget. This is Paul Krugman:

Same As He Ever Was: ... The latest Paul Ryan budget is getting a lot of well-deserved flak, and so is Ryan himself. The combination of cruelty and raw dishonesty is so obvious, it's hard to see how anyone can fail to see what's going on.
But Ryan hasn't changed; his budgets have always been like this, and so has he. Yet for years he was the darling of centrist pundits, who proclaimed him an "honest, open-minded, solution-oriented fiscal conservative." What were they thinking?
The answer was that they wanted someone to fill that role; they knew, just knew, that there had to be people like that — because if there weren't, if there weren't any serious, honest conservatives with real influence, shrill people like me were actually right. And that couldn't be true. So they invented a character called "Paul Ryan" who was what they wanted to see, but bore no resemblance to the real character with that name.
And while Ryan himself may have been devalued — although I'm not even sure of that — there will be others. Remember all the praise lavished on Chris Christie until Bridgegate broke? Again, it was easy to see what Christie was — but only, apparently, for those of us not committed to the belief that sensible moderates must exist in the GOP.
So, who's next?

This post from 2012 "Ryan's Budget: The Most Fraudulent Proposal in American History" still gets quite a bit of traffic.

'Inequality is Caused by Ideology, not Technology'

Posted: 02 Apr 2014 09:32 AM PDT

John Quiggin:

Inequality is caused by ideology, not technology, by  John Quiggin: I've just had an article published at New Left Project, under the title Don't Blame the Internet for Rising Inequality. Much of it will be familiar, but I want to stress a particular, and I think novel, critique of the idea that skill-intensive technology is responsible for rising inequality

...The real gains over this period have gone to a subset of the top 1 per cent, dominated by CEOs, other senior managers and finance industry operators. This group has nearly quadrupled its real income over the past 30 years...

This is a major problem for the Race Against the Machine hypothesis. Much of the growth in income share of the top 1 per cent occurred before 2000, when the stereotypical CEO was a technological illiterate who had his (sic) secretary print out his emails. Even today, the technology available to the typical senior manager—a PC with access to the Internet, and a corporate intranet with very limited capabilities—is no different to that of the average knowledge worker, and inferior to that of workers in tech-intensive specialties.

Nor does the ownership of capital explain much here. Even for tech-intensive jobs, the capital and telecomm requirements for an individual worker cost no more than $10,000 for a top-of-the-line computer setup (amortized over 3-5 years), and perhaps $1000 a year for a broadband internet connection. This is well within the capacity of self-employed professional workers to pay for themselves, and in fact many professionals have better equipment at home than at work. Advances in information and communications technology thus can't explain the vast majority of the growth in inequality over the past three decades.


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