And now you know why the Silicon Valley billionaires need imported labor to do the work in their companies. They can’t pay enough for an employee to live in the valley so they have to get someone who is used to living in squalor and thinks a mediocre US wage is a fortune.
Income gaps not always unfair
By Micha Gisser / For the Journal
The Alburquerque Journal Monday, April 14, 2014
To divert attention from his mishandling of the economy and the problematic Obamacare, President Barack Obama has begun a campaign to promote income equality. We are back to the assault on “millionaires and billionaires.” Here are some facts and comments related to the issue.
An acceptable indicator of economic inequality is the Gini ratio. A larger Gini ratio signifies a higher level of inequality. Since 1967, income inequality has been rising. (The census neglected to specify whether their Gini ratio is before, or after taxes. Since the two Gini series swing together, neither is preferable.)
The upward trend of inequality over time is likely due to structural economic changes. Under Obama’s watch the Fed’s irresponsible easy-money policy did nothing for economic growth, but it drove the interest rate down to near-zero levels. Consequently, people shifted their savings from bonds to stocks, and, as a result, from Jan. 20, 2009, to March 17, 2014, the Dow more than doubled (from 7,949 to 16,249).
“Millionaires and billionaires” had a feast and from 2009 to 2012 the Gini ratio jumped from 0.468 to 0.477.
NAME: Micha Gisser
TITLE: Economist
ORGANIZATION: Retired
Fiscally induced income redistribution will lead to economic losses. For example, the market compensates people with higher education for income foregone while attending school and for fewer years remaining in the labor market.
Taxing them at a higher rate would be inefficient, but more importantly, simply unfair. According to the Bureau of Labor Statistics, in 2012 median weekly earnings for those with doctor, master or bachelor degrees were, respectively, $1,624, $1,300 and $1,066. The comparable figures for holders of a high-school diploma or less than a high-school diploma were, respectively, $652 and $471. Some of the differences, beyond doubt, reflect the cost of education.
Here is another illustration from the medical profession: According to a recent “Profiles of Physicians Salary Survey” for 2011-2012, the six-year-practicing-average salary of a pediatric surgeon was $401,000. The comparable figure for a physician in family practice was $200,000.
Some of this $200,000 difference can be attributed to the years of residency and specialization invested by the surgeon after graduation, and, also, accounting for the stress involved in performing surgery. After the necessary adjustments the pediatric surgeon does not necessarily earn that much more than the family doctor.
Likewise, those who insist that “millionaires and billionaires” do not pay their “fair share” of taxes are not necessarily promoting social justice. Consider the life story of Michael Dell who abandoned his medical studies at UT Austin and, from a rented room started winning bids to sell computers by skipping the overheads of computer stores. He took a huge risk. Had his idea proven wrong, today, rather than a physician or a millionaire, he would likely be a salesman in some electronics store.
A similar story could be told about a Turkish immigrant by the name of Hamdi Ulukaya who founded Chobani. By penetrating a competitive market he too took a big risk.
the rest of the article
http://www.abqjournal.com/383619/biz/income-gaps-not-always-unfair.html
How can this pseudo conservative who is at war with the Tea Party movement and their representatives in congress like Mr. Ted Cruz pose as a conservative.
Mr. A.S. Sowell is a Gope interloper who is over the hill and should go back to pushing for Jeb and Chris Christie to be the nominees, they are as conservative as he is and natural born losers at the Presidential level.
Why people here care to listen to a person at war with the people who have demonstrated that they stand up for conservative values when A.S. Sowell is just a tool of the GOPe I don’t fathom.
ping