Income Inequality Is Not Rising Globally. It's Falling.

[Bob Of Burleson]

By TYLER COWEN
The New York Times

Income inequality has surged as a political and economic issue, but the numbers don’t show that inequality is rising from a global perspective. Yes, the problem has become more acute within most individual nations, yet income inequality for the world as a whole has been falling for most of the last 20 years. It’s a fact that hasn’t been noted often enough.

The finding comes from a recent investigation by Christoph Lakner, a consultant at the World Bank, and Branko Milanovic, senior scholar at the Luxembourg Income Study Center. And while such a framing may sound startling at first, it should be intuitive upon reflection. The economic surges of China, India and some other nations have been among the most egalitarian developments in history.

Of course, no one should use this observation as an excuse to stop helping the less fortunate. But it can help us see that higher income inequality is not always the most relevant problem, even for strict egalitarians. Policies on immigration and free trade, for example, sometimes increase inequality within a nation, yet can make the world a better place and often decrease inequality on the planet as a whole.

International trade has drastically reduced poverty within developing nations, as evidenced by the export-led growth of China and other countries. Yet contrary to what many economists had promised, there is now good evidence that the rise of Chinese exports has held down the wages of some parts of the American middle class. This was demonstrated in a recent paper by the economists David H. Autor of the Massachusetts Institute of Technology, David Dorn of the Center for Monetary and Financial Studies in Madrid, and Gordon H. Hanson of the University of California, San Diego.

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[planosteve]

I believe I'll just wait for Stockman or Mish to chew this guy up and spit him out. Save me a lot of time.

[GFB]

"Income inequality has surged as a political and economic issue."

No it hasn't.

Just because a dishonest President goes on and on, with no critiquing from the lap dog media..doesn't mean it's an important issue.

It doesn't even show up as a blip when people are polled about what most concerns them.

..neither does global warming.

[GFB]

A dishonest article about a dishonest media..perfect.

[jellowrestling]

"Income inequality has surged as a political and economic issue."

No it hasn't.

Just because a dishonest President goes on and on, with no critiquing from the lap dog media..doesn't mean it's an important issue.

It doesn't even show up as a blip when people are polled about what most concerns them.

..neither does global warming.

+1

[Bob Of Burleson]

From the article:

The message from groups like Occupy Wall Street has been that inequality is up and that capitalism is failing us. A more correct and nuanced message is this: Although significant economic problems remain, we have been living in equalizing times for the world — a change that has been largely for the good. That may not make for convincing sloganeering, but it’s the truth.

. . .

Yes, we might consider some useful revisions to current debates on inequality. But globally minded egalitarians should be more optimistic about recent history, realizing that capitalism and economic growth are continuing their historical roles as the greatest and most effective equalizers the world has ever known.

You guys are disagreeing with this?

[GFB]

From the article:[/
[color=#FF0000]You guys are disagreeing with this?

The opening line of the article..is complete nonsense.

[jellowrestling]

From the article:[/
[color=#FF0000]You guys are disagreeing with this?

The opening line of the article..is complete nonsense.

+1 No one except hard-core Lefties give a rat's-*ss about "income inequality". 90% of Americans want personal opportunity, not "equalized income". Rich people are proof to most Americans that it can be done, and encourages us. People who sit around whining about "income inequality" are what most Americans call "Losers".

[planosteve]

Average real income in the US today is the same as in 1961. In spite of all the technilogical advances of the last 50 years we are no better off today than we were 50 years ago. The middle class is disappearing while the rich are receiving more and more of the national income.

[GFB]

Average real income in the US today is the same as in 1961. In spite of all the technilogical advances of the last 50 years we are no better off today than we were 50 years ago. The middle class is disappearing while the rich are receiving more and more of the national income.

What exactly..is "national income."

[scarlett~nc]

Average real income in the US today is the same as in 1961. In spite of all the technilogical advances of the last 50 years we are no better off today than we were 50 years ago. The middle class is disappearing while the rich are receiving more and more of the national income.

What exactly..is "national income."

yea what is that ?

[planosteve]

Average real income in the US today is the same as in 1961. In spite of all the technilogical advances of the last 50 years we are no better off today than we were 50 years ago. The middle class is disappearing while the rich are receiving more and more of the national income.

What exactly..is "national income."

yea what is that ?

There are various definitions. But, the main point is the rich are getting richer and the middle class is stagnet by any way you measure it.

[GFB]

There are various definitions. But, the main point is the rich are getting richer and the middle class is stagnet by any way you measure it.

..and most people are entirely happy being "middle class."

All in all..being "stagnant" there in America (which no one has to be).. is a pretty good place to be.

[jellowrestling]

There are various definitions. But, the main point is the rich are getting richer and the middle class is stagnet by any way you measure it.

..and most people are entirely happy being "middle class."

All in all..being "stagnant" there in America (which no one has to be).. is a pretty good place to be.

My wife and I are schoolteachers. We have 3 cars (two of them less than a year old, one of which is almost paid for), live in a 2300 sq ft house, have a pool, central heat/air and two color TVs.

Number of people in my University Park neighborhood who had all of these things when I was a kid: zero.

We lived in the biggest house on the block: 1800 sq ft. Nobody within two blocks in any direction had a pool (there was one pool three blocks away), most people didn't have central heat/air, most people only had one car, and certainly only one TV.

In that two-block radius, there were several lawyers, several college professors, a judge, the chief of police, a TV producer, etc... And I'm talking about the late 60's, not the 30s.

[GFB]

There are various definitions. But, the main point is the rich are getting richer and the middle class is stagnet by any way you measure it.

..and most people are entirely happy being "middle class."

All in all..being "stagnant" there in America (which no one has to be).. is a pretty good place to be.

My wife and I are schoolteachers. We have 3 cars (two of them less than a year old, one of which is almost paid for), live in a 2300 sq ft house, have a pool, central heat/air and two color TVs.

Number of people in my University Park neighborhood who had all of these things when I was a kid: zero.

We lived in the biggest house on the block: 1800 sq ft. Nobody within two blocks in any direction had a pool (there was one pool three blocks away), most people didn't have central heat/air, most people only had one car, and certainly only one TV.

In that two-block radius, there were several lawyers, several college professors, a judge, the chief of police, a TV producer, etc... And I'm talking about the late 60's, not the 30s.

Well.. you'll be entertained to know..my 1250 sq ft house which..I could not come close to affording at what it would sell for now..has no central air..no central heat.

We had plans to sell it at some point to just cash out.. but truth is..because of proposition 13, when this place is paid off, I will be able to live cheaper here, then probably anywhere in the country.

I think we'll stay.

[jellowrestling]

I was hoping you'd move out here, and we could play some funky blues together.

How does Prop 13 work?

[Bob Of Burleson]

The opening line of the article..is complete nonsense.

The opening line appears to be the only part of the article that you read.

"When in the course of human events" could be the opening line of a serial killer's manifesto.

[jellowrestling]

The opening line of the article..is complete nonsense.

The opening line appears to be the only part of the article that you read.

"When in the course of human events" could be the opening line of a serial killer's manifesto.

Great analogy, BoB. Or not.

[Mark]

I was hoping you'd move out here, and we could play some funky blues together.

How does Prop 13 work?

I think prop 13 froze Kalifornia property taxes back in the 70's.

[Bob Of Burleson]

"When in the course of human events" could be the opening line of a serial killer's manifesto.[/b]

Great analogy, BoB. Or not.[/quote]

I liked it.