tag:blogger.com,1999:blog-27951078.post8001469483947438068..comments2024-02-02T05:45:33.724-06:00Comments on Incoming: John Phippshttp://www.blogger.com/profile/03245790061133614986noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-27951078.post-5022501612104494832010-02-23T09:59:54.415-06:002010-02-23T09:59:54.415-06:00Anon:
I have addressed the topic a number of time...Anon:<br /><br />I have addressed the topic a number of times so just some bullet points in reply.<br /><br />Why I think growing income inequality is a problem:<br /><br /> - Trickle down doesn't work nearly as well as imagined, according to recent studies.<br /> - Income inequality poses large challenges for our tax system. <br /> - II creates social tension that too often produces really unfortunate results.<br /> - II generates political power inequality.<br /> - II screws up markets by losing the large-number effect. (like index funds in the grain markets)<br /> - II creates an enormous population with little economic momentum (zero wage growth) or mobility.<br /><br />Many of these trends are not apparent in the upper quintile, such as your example points out. But I think they will be. Pointing out the poor are better off than they were 50 years ago fails to address the danger of the growing chasm.<br /><br />Finally, II is bad now, but with the increasing return to capital and lower returns to labor (our farms are prime examples) it's going to accelerate.<br /><br />The question is if there is any level of II that you would become concerned about?John Phippshttps://www.blogger.com/profile/03245790061133614986noreply@blogger.comtag:blogger.com,1999:blog-27951078.post-65341753725708572452010-02-22T15:13:09.701-06:002010-02-22T15:13:09.701-06:00John - your continued interest in this topic befud...John - your continued interest in this topic befuddles me...especially your apparent support of leveling the income distribution field of play.<br /><br />While I do support a consumption tax, I disagree with some of the comments that appear to say none of this wealth "flows through." I'm willing to bet in this economy that there are a few small businesses that are very happy to have "rich" clients that have continued to spend and indulge in some of their lavish lifestyles. As my income has increased, I find myself spending much less time on projects and much more money for other people's time. I don't even mow the grass anymore, unless a momentary pause in our farm business allows for some "tractor time"!<br /><br />I was a middle-income earner living in the city and paying out my ears in taxes. I got out and into a tax-advantaged situation. Monthly paychecks = no risk and no risk should equal little reward in the way of tax savings. Want to decrease your % of taxes...make more money away from your paycheck!<br /><br />It's like marketing corn. Some people know how to win the game (...the rules aren't any secret), but the people that lose keep wanting to change the game's rules. Support prices, gov't aid, etc. I say, learn the rules and learn to play like the winners do...you may not be as rich, but you'll make more money and be smarter for the experience.Anonymousnoreply@blogger.com