income equality

Discussion in 'Too Hot for Swamp Gas' started by rivergator, Sep 10, 2013.

  1. mdgator05
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    mdgator05 Premium Member

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    Actually, the headline number (which is the equivalent of the U3- which is often called the "headline unemployment rate") is for all products including food and energy.

    The core is used by many people within the economics field to smooth variability in their research or predictions, as government monetary policy has limited impact on the short-term variability of food and energy. But, as BLS says, the government uses the all products rates for any official activities.
  2. uftaipan
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    uftaipan Well-Known Member

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    Why only $15/hour? Why not $100/hour? Then everyone could be rich with just one stroke of a pen!
  3. HallGator
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    All depends on what you use for a base to adjust it. If you use the $1.60 and hour from 1968 then it would adjust to $10.64 in 2012 dollars
  4. docspor
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    The minimum wage is a price control. Price controls subvert efficient outcomes.

    What is the problem that we have that necessitates a min wage? collusion by firms in hiring, etc. If that is the case, solve that problem directly, not by causing an inefficient labor mkt.

    It's like "solving" drunk driving by getting rid of happy hour.

    In both cases, a second best solution is being pursued when a first best solution is feasible.
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  5. neisgator
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    neisgator Belligerent Gator

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    I randomly picked 7 years. 2 were higher 5 were lower.
    Just did 5 more...3 higher 2 lower

    So..out of 12..
    8 higher
    4 lower
    Of the 4 lower...3 were within .55 of current rate.
  6. neisgator
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    neisgator Belligerent Gator

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    I think you are onto something.
  7. LittleBlueLW
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    LittleBlueLW Premium Member

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    Easy solution. Cap all earnings. Take every penny above XXXXX dollars and give it to everyone else.

    I mean anyone earning above XXXXX dollars wont miss the rest of it.

    Please note the sarcasm.

    In all seriousness, I dont know what to do about it and I dont know if anything needs to be done. I mean, what is the end game? Everyone gets a trophy just for showing up?
  8. G8trGr8t
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    G8trGr8t Premium Member

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    GENIUS
  9. northgagator
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    northgagator Well-Known Member

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    Going after the rich dies nothing but put the squeeze the other 90%.

    How? In most cases taxes for the top 10% is the cost doing business. What do business do with cost increased? They past it on to their customers.

    In other cases they take cost cutting measures. To cut cost they cut back on spending our payroll. These cut backs hit the vendors of those goods and services and the employees.

    Upping the entitlements and minimum wage does nothing but distort the laws of supply and demand. Minimum wage Pushes up the wages without increasing productivity force employers to outsource or to withdraw from the market. Increasing entitlements does not increase productivity and distorts the cost of labor. In some cases people will not enter the job market because the entitlements are easier to get than punching a time clock. In other cases i entitlements can pay more than a job.

    The gov'y should encourage productivity not discourage. There always will be that earnings gape issue that was described in the OP. encouraging productivity won't erase that gape but it will allow more people to get a bigger chunk of pie.

    don't buy goods
  10. fredsanford
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    fredsanford VIP Member

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    This is nothing new. It's been a coordinated effort of corporate America and the GOP since at least 1980.

    The goal is to destroy the middle class and just have rich elites and serfs.

    The last hurdles are the remaining unions and the ballot box. Once those last two are destroyed/gamed, the US will be back in pre-industrial revolution economic conditions.

    Prepare your great grandchildren for 18 hour days at the factory.
  11. jimgata
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    Why has income inequality widened under Obama more than any other president in the past 2 decades, if it is a republican effort to destroy the middle class?
  12. g8orbill
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    +1
  13. corpgator
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    corpgator Well-Known Member

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    If you look strictly at income tax, they pay the most. If you also factor in regressive taxes like car registration, then add SS and Medicaid which are capped plus property taxes then everyone actually pays about the same % of their income yet the bottom have a much greater % of their income taken up by necessities.
  14. LittleBlueLW
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    LittleBlueLW Premium Member

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    Do you have a source for this info? On this surface, this seems false.
  15. QGator2414
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    Get rid of the child tax credit. Require community service from both parents to receive Medicaid coverage for the birth of a child. Require community service to receive food stamps and WIC after 26/52 weeks of receiving it with no requirement. Etc etc etc

    Things that help people in need but build responsibility to enhance their ability to get out of "poverty"...
  16. corpgator
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    corpgator Well-Known Member

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  17. QGator2414
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    Besides the fact it is quite obvious the context of taxes when discussing the evil 1% are federal income taxes...Medicare/Medicaid is not capped. The 1% unless pulling a Buffet (assuming he pays himself $100K as reported though I have seen $175K as well) will be paying SS on the max taxable which is a lot llarger number than the "poor". Now with obamacare those who make $250K get hit up with more Medicare taxes on investment income. Etc etc etc
  18. LittleBlueLW
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    Well, all of it. I guess I'll have to trust the blogger here that his argument has no bias?

    Edit: I read it and it makes some sense, except that the blogger makes the argument that the lower wage earners should really direct their anger at local and state governments, not the federal government. Or maybe what he is really advocating is that the federal government take over all of it.
  19. mdgator05
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    mdgator05 Premium Member

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    The biggest issue here is essentially that labor is becoming worth less and less. A combination of an increase in the supply of available labor for production through free trade laws (which lowers firm demand for labor in the "local" economy (in this case the US) and an increase in automation, means that wages are declining to a historically low percentage of the overall economic gains. Firms are able to generate higher profits, which are fine, but naturally tend to reward those with capital already. As CF correctly pointed out, if you are investing in firm profitability, you are living quite well right now.

    So now we have to decide between several options to deal with this trend:

    1. Decide we don't care. We end up with far lower social mobility and a semi-permanent lower and upper class. This sounds like a cruel option to many Americans (especially those that value "the American Dream"), but it is certainly an option.

    2. Artificially raise the importance of labor. This would require many policies that most aren't prepared to even discuss, such as outlawing particularly effective automation, ending free trade agreements, allowing free entry and exit (open borders), or otherwise enforcing some set monetary distribution between the owners of capital and laborers.

    3. Come up with some way to provide more lower income people an opportunity to share in the economic gains of firm profitability beyond simply increasing labor, which is the traditional method by which they benefited. In a world with an international capital market, this method of benefit for "local" labor is no longer applicable. This would be my personal preference, but it is difficult to figure out how to effectively operate such a program.
  20. g8orbill
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    maryland- if I have the ability to make a lot more than you why is it my responsibility to give you any of it

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