Posted on 10/05/2009 8:00:30 AM PDT by SeekAndFind
The great Canadian economist Reuven Brenner noted in his 1983 book, History: The Human Gamble, that periods of massive income inequality frequently lead to economic innovation. Simply put, those who are not yet wealthy see those who are, and they gamble on exciting ideas in hopes of joining the existing rich at the top of the heap. As Brenner put it, "it is the perception of inequality that induces people to take risks."
Along those lines, USA Today founder Al Neuharth wrote in 2007 about his own career path compared to that of CNN's Larry King. Neuharth observed: "[King] was a poor Jewish kid from Brooklyn whose father died when Larry was in grade school. I was a poor German-Russian kid from South Dakota. My dad died when I was two. Larry and I both knew we'd have to take some big risks if we wanted to make it big time. He gambled on a late-night radio talk show that he got syndicated nationally in 1978. It ultimately developed into CNN's Larry King Live. I gambled on USA Today in 1982. It became 'The Nation's Newspaper.'"
But even if we ignore the exciting innovations and advances wrought by what some term the "wealth gap," there would still be no reason to fret about it. For one, the U.S. is, thankfully, to this day a magnet for low-skilled immigrants. Immigrant additions to the work force naturally drive down average wages at the lower end of the scale (thus increasing the gap), but they also increase economic productivity within these 50 states.
Second, the income calculations that cause so much hand-wringing are notoriously flawed. Given the limited range of jobs that factor into wage rates, the economic opportunity picture is highly limited.
(Excerpt) Read more at forbes.com ...
...when did America become so fixated on income ‘inequality’?....I say it started with the civil rights movement in the 1960s.
It's a national joke....Written to the level of a 5th grader.
I refuse to have it delivered to my hotel room(s) and make the hotel take the cover price off my bill.
It’s social justice. Everybody crosses the finish line at the same time, instead of everyone starting out at the start line at the same time. The latter case means someone may win and someone may lose.
I'm not saying that a private security guard should draw the same pay as an FBI agent, because the risks, training and dangers faced by an FBI agent are typically far greater and, therefore, deserve far greater reward.
However, I am saying that your more typically government worker, say a paper pusher in the Social Security Administration, has neither the training, risks or other dangers to justify the 35-40% greater pay package than someone doing comparable work in the private sector. In fact, dangers such as lay-offs are much less so a pay package below what the private sector pays would be entirely appropriate in the vast majority of cases.
We would know that an appropriate pay grade was reached when the ratio of qualified applicants to job listings in the government sector became equal to the same ratio in the private sector. Why shouldn't the "equal pay for equal work" mantra apply here?
“...when did America become so fixated on income ‘inequality’?....I say it started with the civil rights movement in the 1960s.”
Some argue that over the last few decades, the difference in compensation between the lowest and highest in a company has widened, I’ve not seen any data to know one way or the other, but with everything being so globalized these days, seems that would not be unexpected.
The whole idea that a certain group will get paid less for equal work is an absurdity.
What businessman is so married to his “racism” or “sexism” that he wouldn’t hire the “underpaid” group (that supposedly has the same output) and sacrifice a competitive advantage over his competitors?
Patently absurd.
Social justice means that everyone be treated justly. Take the Marxist slogan: from each according to his ability, to each according to his need. Does not a Bill Gates have needs that allow his abilities to flourish? He needs more capital than Joe Smoe who teaches at the local elementary school. Ditto the small businessman who is struggling to get a foothold and the local bank cannot give him a loan because it has been mandated by government to provide a loan for the Haitian immigrant down the street.
In theory, perhaps. But in practice, my description is much closer to the truth.
Oh, yeah, those Bear Stearns executives really earned their millions in bonuses.
Government employees are clinging to the tax payers backs, as the tax payers are now on their knees supporting government employees high end salaries, benefits, and those lottery style government retirement pensions.
Unless, of course, if you are lazy. Then it sucks!
The Death Tax - which Bush ALMOST ended for ONE year - is but one expression of the fact that congress simply will NOT allow the sort of financial independence that might lead to family dynasties.
It’s not just about wealth, it’s about a chamber full of old ladies - congress - with a bad case of p3nis envy.
Confiscation of others’ wealth - which is little more than legalized robbery - gives them all a very nearly s3xual thrill, even as it helps preserve their lock on power.
For that reason alone, if no other, taxes WON’T be coming down. Not now, not ever.
My parents worked their whole lives to pay off their property that they dearly wanted their grandkids to inherit. They ended up having to go into a nursing home for custodial care. They had to basically sign their property over to the state. $6,000 per month. The property was gone within the first year. This is a totally heartless system.
That’s a rough story; my sympathies.
In fact, there are countless such stories around the country, and I, myself, got utterly scr*wed by the government in a similar instance.
The unbridled and unrestrained greed of the Pigs at the Trough - our government - as they attempt to slake their unquenchable thirst for the money and possessions of others makes Al Capone look like a penny-ante - and, actually, rather honest and straightforward - piker.
Bingo!!! We need to start explaining as to how thoroughly the civil rights movement was influenced by communists and socialists or we may NEVER be able to overcome the pretense to moral superiority of those who are still running off of the fumes of that movement.
Bingo!!! We need to start explaining as to how thoroughly the civil rights movement was influenced by communists and socialists or we may NEVER be able to overcome the pretense to moral superiority of those who are still running off of the fumes of that movement.
I couldn’t agree more. Focusing on income equality is the road to serfdom. It’s also a formula for impoverishing the country. We should celebrate success and greatness — and our differences!
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