Income inequality

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Wednesday, May 6. 2009

We recently noted here that, if you gave 5 people each $100,000 to do something with, after 5 years one guy would be broke, one guy would have a million bucks, and the others somewhere in between.

It's like Jesus' parable of the talents (which of course had nothing to do with money, but with the use of gifts of the spirit.)

Readers know that I don't give a darn what other people make. I care about what I make, how I make it, and what I do with it.

Just One Minute looks at Robert Reich on income inequality. One commenter says:

The uproar about income inequality continues to baffle me. Why does relative socioeconomic status matter more than absolute socioeconomic status? If the US has the richest poor people in the world, why is the distance between them and the people at the top such a big deal?

FWIW, Gregg Easterbrook, a liberal, argued in The Progress Paradox that if you factor out immigration, the rise in income inequality disappears. He got severely criticized by the left for this analysis IIRC.

Also I don't trust government definitions of "poor." My friends whose two kids qualify for S-CHIP have a 4 (smallish) bedroom house in an expensive part of town, a car, two cell phones, high-speed internet, a nice desktop & two nice laptops, buy mostly organic groceries, spend disposable income on ebay, gardening hobbies, etc. etc. They live on one-and-a-half salaries (he works full-time, she works part-time out of the house). But they're considered to be in need of government services, apparently. So if they're counted in the numbers of "needy" Texans, no wonder the numbers are skewed.

Posted by The News Junkie at 20:02 | Comments (12) | Trackbacks (0)

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