Kasz216 said: As teachers, you'd think they would know that the Gini Coefficient naturally grows in times of economic success and shrinks in times of economic contraction. |
Your statement ignores the reality of the 50's, 60's, and 70's where the economy was doing very well but income disparity was very low. History has shown us that the Gini coefficient is high right before economic trouble which can clearly be seen if you look at what happened in the late 1920's, the first couple of years of the 21st century and most recently in 2007. To a leser extent you could even include the mid 1980's in that list aswell.
It's also important to point out that although the economy goes grow through investment that it only grows through investment done here. As has been said in this thread already less and less investment is taking place in the United States because we cannot hope to compete with countries like China, India, and other Asian countries when it comes to production costs.
Your statetment about regular people having more money is misleading. Yes they do have more money but it's no secret that income has not kept up with inflation for regular people.