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10-20-2011, 10:42 AM
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7,338 posts, read 10,517,676 times
Reputation: 3477
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I keep hearing about income inequality but my question is what is the best solution to this? I thought this economist gave some interesting insights on this topic.
Quote:
What can government do to reduce inequality?
In the long run, redistribution doesn't work. Focusing on improving the quality of the workforce -- through education and skill building -- is probably the only answer.
While unemployment benefits have been extended this year, you've argued that our limited safety net may be exacerbating the political desire for quick fixes.
When you have a very thin safety net, losing your job means you lose health care and your unemployment benefits run out quickly. There are benefits to a thin safety net. Those who lose their jobs have a strong incentive to look for one.
The question is, is it better to focus on strengthening the safety net? If you do, you could actually have less pressure on policymakers to pull rabbits out of the hat by trying to create jobs where there are none...
Raghuram Rajan says income inequality will hinder growth - Nov. 24, 2010
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10-20-2011, 10:45 AM
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Location: By the sea, by the sea, by the beautiful sea
67,112 posts, read 49,913,812 times
Reputation: 37696
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Maybe it's not the income inequality creating problems, maybe it's the outgo inequality (tax loopholes/cuts for the wealthy, etc.) that creates problems?
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10-20-2011, 10:47 AM
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13,180 posts, read 14,317,200 times
Reputation: 4547
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"Redistrubution doesn't work."
Denmark
Highest taxes in the World.
Biggest goverment in relation to GDP in the World
Has one of the most progressive tax system in the World
Has one of the smallest gaps between rich and poor in the World
Also the happiest country in the World
One of the least corrupt countries in the World
A higher standard of living than the USA
Most press freedoms in the World
Most educated, universal health care, wonderful vacation/retirement benefits.
"Redistribution doesn't work"......LOL
How long are white middle class voters going to fall for this right wing propaganda that income inequality is a good thing?
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10-20-2011, 10:48 AM
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Location: Syracuse, New York
3,118 posts, read 2,887,915 times
Reputation: 2289
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Eliminate the mortgage deduction. This will cause the rich to intermingle more with the poor and middle-class.
Can't get trickled-down upon if you're nowhere near the rain!
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10-20-2011, 10:48 AM
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1,432 posts, read 1,034,229 times
Reputation: 333
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The best solution is to focus on job creation and for people to realize that over time, in a global economy that they have to pick their trade wisely. I don't think that foucsing just on income inequality will help...there is plenty of dollars to go around, there is more of mismatch in skills to jobs, too much Govt. regulation, to litle consumer confidence, and competitors in many areas outside the US...So focus on acquiring a skill that is less likely to be outsourced..
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10-20-2011, 10:49 AM
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1,432 posts, read 1,034,229 times
Reputation: 333
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Quote:
Originally Posted by padcrasher
"Redistrubution doesn't work."
Denmark
Highest taxes in the World.
Biggest goverment in relation to GDP in the World
Has one of the most progressive tax system in the World
Has one of the smallest gaps between rich and poor in the World
Also the happiest country in the World
One of the least corrupt countries in the World
A higher standard of living than the USA
Most press freedoms in the World
Most educated, universal health care, wonderful vacation/retirement benefits.
"Redistribution doesn't work"......LOL
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Feel free to move there... |
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10-20-2011, 10:50 AM
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6,137 posts, read 4,648,163 times
Reputation: 1515
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Quote:
Originally Posted by padcrasher
"Redistrubution doesn't work."
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Great case. You have just proven that the reason Denmark (a country with slightly more than half of the population of New York City) is so great is because of wealth redistribution. Just brilliant.
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Originally Posted by Secchamps98
Feel free to move there...
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Nah, that won't work. We have to force America, a country approximately 55x times the size of Denmark, to work the same way. Don't worry about the vast differences in demographics, education, and all that other stuff. It'll be fine. |
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10-20-2011, 10:52 AM
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13,180 posts, read 14,317,200 times
Reputation: 4547
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Quote:
Originally Posted by Secchamps98
Feel free to move there...
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I would love to but you need a visa that costs about 1 Million Dollars. Believe me, I've looked into it. |
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10-20-2011, 10:53 AM
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Location: Syracuse, New York
3,118 posts, read 2,887,915 times
Reputation: 2289
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All strip clubs should be de-regulated to the point where booze, contact and full nudity would be encouraged.
Drunk, rich men grinding it against hot, working class girls is a time-tested bridge between the income gap.
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10-20-2011, 10:54 AM
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12,436 posts, read 11,390,224 times
Reputation: 3157
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Quote:
Originally Posted by Motion
I keep hearing about income inequality but my question is what is the best solution to this? I thought this economist gave some interesting insights on this topic.
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More austrian economics. He is advocating removing all safety nets so people will just hold on a little tighter...so what happens when they actually fall...Too bad I guess.
In reality he is calling for greater productivity (hold on tighter) for workers. How has that worked so far.
As you can see from the chart below, although productivity has gone up because hourly wages have stayed the same. I think the graph shows that Austrian economics is not going to end the income disparity.
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