| HappySqurriel said: I guess you could ask an alternative question ... Suppose you live in a world with only 2 participants, a rich person and a poor person, which of the following situations is more ideal (assuming constant buying power for the dollar in both worlds): a) Poor person earns $10,000/year and the rich person earns $50,000 per year b) Poor person earns $20,000/year and the rich person earns $150,000 per year |
If inflation trippled in the (b) the poor is better off with a. And if the means by which situation b arrived continues, and enables the rich person to continue this, and be able to rig the political system so the poor person will bail them out if things go south, then situation b is inferior.
How about this, how about in situation b, the poor person goes to $12,000, and the rich person ends up going to $14000? That is closer to the reality of what is going on. Everyone at the top has done a lot better, and the closer you get to the bottom, the less and less they share in these gains. Or, even worse:
http://www.motherjones.com/politics/2011/02/income-inequality-in-america-chart-graph
http://tpmdc.talkingpointsmemo.com/2012/05/40-years-of-workers-left-behind-chart.php
At the rate you described, for every $10,000 the poor person on the bottom gains, the rich one gains $100,000 AT LEAST. If you want to go by exponential growth, then the poor person's next step is $40,000 and the rich person would then go to $600,000. And you argue political talk now, you would have politcians arguing the tax rate of the rich person needs to be slashed, and the poor person would have to pay more taxes than they are currently. That is the talk going on.
So, answer me, who is really better off here? By real standards, the bottom is stagnant, and the top is doing exponentially better. This topic, however, is about philosophically whether the Matthew Effect is something that should be left alone or needs to be tempered some.








