Is "the rich getting richer" a problem?

[Rab]

Kasz216 said:

Rab said:

Kasz216 said:

Rab said:

Kasz216 said:

Here's the thing. I haven't done EXTENSIVE research on it, but the little research I've done has lead me to a fairly big conclusion.

"The rich only get richer when the economy is expanding."

It's worth noting, that although to the average person the whole "Top 1%" or whatever you want to call it look pretty static it actually varies WIDELY."

I'd cite 2008 where the gini coefficient actually SHRUNK during the crisis.

The rich primarily get richer by "outrunning" not "stealing".

So it doesn't really seem like an issue.

Honestly, the Rich haven't even been getting much richer recently to be honest. While the Gini Coefficent has rised since the 90's. It's risen for income of households, but NOT income of individuals.

What's created the great increase in wealth lately has mostly been an increasing trend for money to marry money. Not a real compound interest effect. Once women get "full" representation in the workforce at proper levels, the Gini coefficient likely may stabilize.

 

The rich are indeed getting richer, and forcing others into poverty

Below research on the subject

http://www.thersa.org/events/video/vision-videos/ending-poverty

I see a video posted by a....

When i have specific hard fact numbers that specifically show that individual gini coefficent is down, and the gap increase between the rich and poor only exists when you account for households.

 

My guess is you don't really understand the difference between individual gini coefficent and household coefficent... and this is where the problem is resting.

No offence but did you watch the video, you should if your really interested in the subject, it has a ton of data that you could review

Ok.  I watched it... and I was 100% right in not watching it the first time.  Like I said in the previous paragraph.  The data he is using is not rich people getting richer.  It's Rich households getting richer and poorer households getting poorer.

Which is caused by demographic problems.  

 

A) In short...  the poor are more and more likely to be unmarried.   Which lengthens out the bottom of household income, because instead of one household where you have an income of 15K you could have one who has an income of 0, and another who has an income of 15K.

B) The Rich and Middle class haven't seen nearly the same drop in marriages, so the bottom naturally pushes the gini coefficent up, as the "middle point" Moved more towards the bottom.

C) Furthermore, the rise in two income families.   Now a days it's common for even two middle class or wealty families to work, when previously this was only the domain of poorer families. (That weren't single parent.)  Two Middle class incomes = one rich person for example.  Two rich people marrying?  That greatly increases the distribution of wealth among the rich, because not only do those two salaries now become one household income!  Someone who previously wasn't in the top 1% or top 50% get "bumped up" to top 1% or top 50% status.

D) Sorting by econmic prefrence is becoming more and more dominant.  Now rich guys are marrying rich women, They have the most in common and are far more likely to meet and talk to each other then poorer people.  Why didn't this happen before?  There weren't many rich women or even middle class earning women. 

 

I'll put the first one in some really easy to understand math to show you what i mean.

1)   Say you have 6 family incomes in your micronation.

30, 40, 50, / 50, 70, 80

The top 50% have 66% of societies wealth.

 

Now say the bottom two families split up... so your family income looks like this.

0 (living off welfare) 15 15 40 / 50 50 70 80

Thet top 50% now hold  92%! of all wealth.

Except.  The rich didn't actually get any richer... nobody got any richer.  The poor got poorer due to family differences.  Should we legislate for that?  Punnishing one guy because two people he doesn't even know go divorced?   How should we even legislate that?

Well thx for at least watching

I found the research in the video quite revealing, I guess we're not on the same page with this one

I also get the feeling your trying to insult me, which is cute ;)