The Great Divergence

[kandrathe]

Hello all

I have been following a series of essays written for Slate Magazine, exploring the possible causes of the increasing disparity in income distribution in the U.S.A.

It has been fascinating reading and I feel motivated to share. I admit, I have not had the time to explore the bibliography (i.e. all the provided links) in the essays. No matter.

Here you are: THE GREAT DIVERGENCE : WHAT'S CAUSING AMERICA'S GROWING INCOME INEQUALITY?

From the Economist today; "Is rising inequality in America exaggerated?"

"SLATE'S Timothy Noah has just wrapped up a ten-part series on the rise of economic inequality in America. Most of Mr Noah's installments are devoted to examining the impact of one of the usual suspects—immigration, trade, de-unionisation, education, executive pay, etc—on the level of inequality in the United States. I found Mr Noah's series disappointing from the start because he failed squarely to confront recent findings that challenge the premise of his exercise. In his final effort, Mr Noah does touch on the possibility that reports of rising inequality have been greatly exaggerated only to wave it off."

Overall, I agree that a more careful look needs to be made, but I'm not ready to declare that the earning power of the bottom 3 income quintiles is keeping up. Another factor in comparing Good A to Good B, purchased 30 years later is the amount of innovation added. A vehicle of 1980 is hardly comparable to a vehicle of 2010. Food is food, thankfully.