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The Cost of 'Reform' | 21 comments (21 topical, editorial, 0 hidden)
Another cost (none / 1)

US wealth gap dramatically widens

The gap between the richest and poorest in the US has widened dramatically since the late 1980s, while the incomes of the least well-off have fallen since the start of the decade, according to a report out on Wednesday .

The nation's wealthiest 5 per cent of families were paid, on average, more than 12 times as much as the poorest fifth in 2004-2006, compared with nearly nine times as much in 1987-1989. During the period, the richest fifth of families added more to their income in each year than the poorest fifth did over the entire period, the study by the Economic Policy Institute and Center on Budget and Policy Priorities shows.

But the poorest people in the US were not the only ones to feel the pinch of increased inequality. The report, which studied changes in income after accounting for federal tax and inflation, found that those in the middle also saw their wages grow slowly compared with the better-off.



In the long run, we're all dead. John Maynard Keynes
by Jerome a Paris (etg@eurotrib.com) on Wed Apr 9th, 2008 at 06:14:19 AM EST
Re: Another cost (none / 0)
In other words, when all of GDP growth accrues to the top few percent of the wealthiest people, does that mean that just GDP growth is not a sufficient criterion for good policy?

When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
by Carrie (migeru at eurotrib dot com) on Wed Apr 9th, 2008 at 06:36:45 AM EST
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Re: Another cost (none / 1)
It's interesting to note that GDP was developed as a policy tool just as inequality was quickly decreasing and about to remain constant for quite some time, in the 30's and 40's

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Wed Apr 9th, 2008 at 06:43:30 AM EST
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Re: Another cost (none / 0)
It means that GDP is a useless way of measuring prosperity as long as there is huge inequality.

On the other hand, we were taught that as early as in elementary school.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Wed Apr 9th, 2008 at 02:40:40 PM EST
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The Cost of 'Reform' | 21 comments (21 topical, 0 editorial, 0 hidden)
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