HappySqurriel on 15 April 2011
Honestly, income disparity is a poor way to measure fair outcomes in an economy. Supposing the purchasing power per dollar is the same in both scenarios which is a more desireable outcome:
- A "poor" household earns $25,000 per year, a typical (mean or median) household earns $100,000 per year, and a "rich" household earns $400,000 per year.
- A "poor" household earns $15,000 per year, a typical (mean or median) household earns $30,000 per year, and a "rich" household earns $60,000 per year.
While the households in scenario 1 are all better off than their equlivalents in scenario 2, the focus on more equitable distribution would lead people to choose scenario 2.
We should be discussing how we can grow the economy to ensure that the standard of living of everyone within the economy improves as much as is possible; not discussing how to create an economy where the realitive reward of success is minimized.
