Sunday, July 30, 2017

What Kind of Gamma Cuckold Accepts Murray Rothbard's Lies About Inequality?

alternet |  In the long term, the indirect effect of the Pay ­Machine—​the increase in income inequality—is economically more injurious than the erosion of company earnings or a stock market downturn.

Income inequality in America has risen sharply since 1976. Economists and pundits point to multiple causes—globalization and competition from low-wage​ countries; growing educational disparities that particularly affect men and minorities; technological changes that reward the highly skilled; decline of labor unions; changes in corporate culture that place stock price and earnings above employees; free market philosophy and the rise of winner-take-all economics; households with high-income couples; lower rates of marriage and of intact families; high incarceration levels; immigration of low­-skilled individuals; income tax and capital gains tax cuts and other conservative economic and tax policies; deregulation; and decreased welfare and antipoverty spending coupled with redistribution programs that disproportionately benefit the elderly.

All of the above may contribute to inequality. However, the proximate cause is quite simple. The jump in inequality is due to a small number of people, mostly business executives, who make huge amounts of money. They are the Mega Rich, the top .1 percent in income, who averaged $6.1 million in income in 2014. The Merely Rich are the rest of the 1 percent. It’s the Mega Rich, not the Merely Rich, who drive inequality. (I’m a member of the Merely Rich, so don’t blame me.) Between 1980 and 2014 the average real income of the Mega Rich has nearly quadrupled, increasing by 381 percent. Over the same period, the Merely Rich doubled their income while the bottom 90 percent lost ground, suffering a 3 percent decline.