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Joseph Mason, a professor at the Ourso School of Business at Louisiana University and a senior fellow at the Wharton School of the University of Pennsylvania published an article recently in U.S News setting forth his theory to account for recent disparities in U.S. income. He believes that this is an area where, once again, the Baby Boom generation is making itself felt. He postulates that the Boomers are now well into their peak earning years and the sheer size of that cohort skews income distribution across age groups. At the same time the younger cohorts (age 18-44) are still working to achieve peak earnings and wealth accumulation. The latter is further delayed by the decision to postpone entering the workforce in order to pursue higher education and to delay marriage and family, which also delays wealth accumulation as people are paying for their kids' coolege education well into their peak earning years. Interesting stuff.
I would add another democgraphic tidbit: the huge influx of illegal immigrants in the last 20 years has ballooned the population at the lower end of the economic ladder. That, too, has likely skewed income distribution and cannot be laid at capitalism's doorstep.
Bottom line: all the angst generated by the Left over income inequality will likely be for naught as the Boomers finally become an historical footnote.
I'm glad to see this type of study completed. The points therein are something i've tossed around in my mind for a few years now, but never had any quantifiable or theoretical basis to know if I was right or wrong.
On the most basic level, most American's would agree with the assertions in this study because they've witnessed it first hand in their everyday lives.
Bottom Line: Income Inequality is a political theory, not a social or financial theory. That should cause American's to be very skeptical of the USG, especially as this President tries to convince you otherwise.
Last edited by AeroGuyDC; 02-08-2012 at 12:06 PM..
Reason: spelling
Does not mention the gap is much wider than in previous generations. But then I instinctively knew baby boomers were going to surpass what ever it is they think they knew and stood for with even more hypocrisy, greed and arrogance. They were a curse to their parents, and are now a curse to their children.
1971 was the era of limitless credit. It flowed into assets held by people who had already accumulated them. Asset bubbles shift wealth from young to old.
Does not mention the gap is much wider than in previous generations. But then I instinctively knew baby boomers were going to surpass what ever it is they think they knew and stood for with even more hypocrisy, greed and arrogance. They were a curse to their parents, and are now a curse to their children.
1971 was the era of limitless credit. It flowed into assets held by people who had already accumulated them. Asset bubbles shift wealth from young to old.
I think you're missing the point. It's not that Boomers are more or less greedy than other generations. It's just that there are so many of them that the normal wealth accumulation of a particular generation in the peak earning years is amplified because of the sheer number of boomers.
I think you're missing the point. It's not that Boomers are more or less greedy than other generations. It's just that there are so many of them that the normal wealth accumulation of a particular generation in the peak earning years is amplified because of the sheer number of boomers.
Yeah, I can see why you didn't link the study in the OP, it doesn't support your premise and doesn't say what you state.
Now I see when some one points that out, they seem to be suddenly "missing the point."
Sorry, that's moving the old goalposts when some one points out your BS.
Joseph Mason, a professor at the Ourso School of Business at Louisiana University and a senior fellow at the Wharton School of the University of Pennsylvania published an article recently in U.S News setting forth his theory to account for recent disparities in U.S. income. He believes that this is an area where, once again, the Baby Boom generation is making itself felt. He postulates that the Boomers are now well into their peak earning years and the sheer size of that cohort skews income distribution across age groups. At the same time the younger cohorts (age 18-44) are still working to achieve peak earnings and wealth accumulation. The latter is further delayed by the decision to postpone entering the workforce in order to pursue higher education and to delay marriage and family, which also delays wealth accumulation as people are paying for their kids' coolege education well into their peak earning years. Interesting stuff.
I would add another democgraphic tidbit: the huge influx of illegal immigrants in the last 20 years has ballooned the population at the lower end of the economic ladder. That, too, has likely skewed income distribution and cannot be laid at capitalism's doorstep.
Bottom line: all the angst generated by the Left over income inequality will likely be for naught as the Boomers finally become an historical footnote.
But boomers are retiring at a rate of between 6000 and 10000 a day now. They started turning 65 this month.
His theory is wrong, IMO. Its more to do with the poverty cycle. In the way that its harder for those who are poor to break that cycle, because they lack the ability to get the education that they need, and their parents are usually to busy working to spend the time they need with their child to properly teach them.
Joseph Mason, a professor at the Ourso School of Business at Louisiana University and a senior fellow at the Wharton School of the University of Pennsylvania published an article recently in U.S News setting forth his theory to account for recent disparities in U.S. income. He believes that this is an area where, once again, the Baby Boom generation is making itself felt. He postulates that the Boomers are now well into their peak earning years and the sheer size of that cohort skews income distribution across age groups. At the same time the younger cohorts (age 18-44) are still working to achieve peak earnings and wealth accumulation. The latter is further delayed by the decision to postpone entering the workforce in order to pursue higher education and to delay marriage and family, which also delays wealth accumulation as people are paying for their kids' coolege education well into their peak earning years. Interesting stuff.
I would add another democgraphic tidbit: the huge influx of illegal immigrants in the last 20 years has ballooned the population at the lower end of the economic ladder. That, too, has likely skewed income distribution and cannot be laid at capitalism's doorstep.
Bottom line: all the angst generated by the Left over income inequality will likely be for naught as the Boomers finally become an historical footnote.
Let me set you straight as I'm a flaming liberal.
A. Nobody is "blaming capitalism" for income inequality. That is a smear you wish were true. Liberals are rightly against "crony" capitalism. A system where the deck is stacked against you.
B. I agree that demographics are likely the major driver behind differences in come. I've come out and said essentially the same think here many times before. That doesn't refute what liberals have been saying. Break it down on a white to white, hispanic to hispanic, black to black comparison. In Blue States there is less income inequality. In Nations that have a roughly equal level of blacks/hispanics there is more income equality.
C. Just because demographics are the major driver, does that mean that the 30 year right wing assault on unions and workers rights didn't make income inequality worse.
What about the right wing fighting for lower taxes on the rich?
Right wing policies hugely increased the gap between rich and poor.
Last edited by padcrasher; 02-08-2012 at 03:47 PM..
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