Economics Thread

[sturg33]

[thethe]

https://www.nationalreview.com/2023/...-on-a-mistake/

Thomas Piketty has driven most of the media coverage and public discussion over income inequality. His research looked at U.S. income-tax returns and reported massive increases in the share of income being earned by the top 1 percent amid near stagnation for the bottom half of earners. But it turns out that Piketty’s research, which made him something of a media star and was uncritically parroted by journalists and the political class, is rife with errors and deeply flawed in its methodology.

Piketty’s widely reported 2003 study, for example, found that since 1962 the income share earned by the top 1 percent more than doubled. But it reached this conclusion by looking at individual income-tax returns.

Notably, income-tax returns don’t account for “government transfers” (existing welfare and benefits programs) nor do they account for nontaxable job benefits such as health insurance and retirement plans. They also fail to capture a significant portion of national income that doesn’t show up on individual income-tax returns. As a result of these and other shortcomings, Auten and Splinter conclude that this approach provides a “distorted view of income inequality levels and trends.”

Their own comprehensive analysis, which corrects for all these issues and examines after-tax, after-transfers income levels — in other words the reality Americans actually experience — finds very different results. Rather than doubling, they find that the share of income earned by the top 1 percent increased only 0.2 percentage points since 1962.

That’s . . . not exactly the meteoric rise in income inequality that we’ve all heard so much about.

They also find that the supposed stagnation plaguing the bottom half of American earners no longer exists once you look at post-tax, post-welfare data. Auten and Splinter report: “Instead of real per capita incomes of the bottom half of the distribution appearing unchanged since 1979, we find that after taxes and transfers they increased by two-thirds.”


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Seems relevant

So super poor people got welfare and benefits and thats the rebuff to the idea that the middle class is getting crushed by the new aristocracy?

Maybe the high level end conclusion was calculated without some variable but those some variables can be used to tell the same story we have seen for decades. The middle class in this country is getting scdrewed.

[acesfull86]

If the folks calling for more progressive taxation and redistribution never account for those transfer payments, it becomes a self-perpetuating call for more and more intervention.

[thethe]

If the folks calling for more progressive taxation and redistribution never account for those transfer payments, it becomes a self-perpetuating call for more and more intervention.

Sure - But the divide between the rich and poor has always existed and will always exist.

What we are seeing in more recent times (50-100 years) is that the divide between the rich and the middle class is widening with the purchasing power reducing for the middle class.

Its a recipe for a disaster but I suppose because we are giving poor people a few hundred bucks a month its all good that the system is being gutted?

And I'm all for more distribution but via different means (bringing COGS over to the US). Thats a great method of redistribution that doesn't involve straight welfare for people that aren't productive.

[sturg33]

Sure - But the divide between the rich and poor has always existed and will always exist.

What we are seeing in more recent times (50-100 years) is that the divide between the rich and the middle class is widening with the purchasing power reducing for the middle class.

Its a recipe for a disaster but I suppose because we are giving poor people a few hundred bucks a month its all good that the system is being gutted?

And I'm all for more distribution but via different means (bringing COGS over to the US). Thats a great method of redistribution that doesn't involve straight welfare for people that aren't productive.

Thethe getting very close to a socialist

Just like his god

[sturg33]

Trump brought us to research new levels.

Now we can't get back.

Now middle class and poor Americans suffer the most

For noticing, Chip Roy is considered a RINO to the cult

[sturg33]

gold goes up and down and it has virtually no relationship to the economy...so i don't read much into it...but maybe you're right...inflation might be lurking...we'll see...i kinda doubt it

the price of gold went from $400 an oz in 2004 to $1800 an oz in 2011...what happened to inflation...nothing...zip...nada

the current price of gold is lower than it was in August 2011...should we worry about deflation?

Lol randomly stumbled on this post from our economics professor a few more months before we experienced record inflation

[sturg33]

Idiots like 57 and nsacpi will say inflation is now 3%, so inflation is "down"

1. 3% inflation means prices are up 3% from last year

2. We are at 20% inflation on EVERYTHING since 2020

The left is stupid as ****

[cajunrevenge]

Sure - But the divide between the rich and poor has always existed and will always exist.

What we are seeing in more recent times (50-100 years) is that the divide between the rich and the middle class is widening with the purchasing power reducing for the middle class.

Its a recipe for a disaster but I suppose because we are giving poor people a few hundred bucks a month its all good that the system is being gutted?

And I'm all for more distribution but via different means (bringing COGS over to the US). Thats a great method of redistribution that doesn't involve straight welfare for people that aren't productive.

Yeah man the divide between the rich and poor was just great before 1920. All downhill since.....




Disclaimer for Garnel - that's sarcasm.

[Garmel]

Idiots like 57 and nsacpi will say inflation is now 3%, so inflation is "down"

1. 3% inflation means prices are up 3% from last year

2. We are at 20% inflation on EVERYTHING since 2020

The left is stupid as ****

I remember someone telling us how great this economy is and that's why illegals keep coming here. lol

[cajunrevenge]

Free food and free housing without having to work. Why wouldn't they come?

[acesfull86]

[Krgrecw]

Thethe getting very close to a socialist

Just like his god

That’s a slippery slope, thethe wouldn’t have taken this stance years ago.

[thethe]

That’s a slippery slope, thethe wouldn’t have taken this stance years ago.

Nonsense - you’re just making up my economic positions. Those that are around here know I’ve had these beliefs for quite some time now.

[Krgrecw]

Nonsense - you’re just making up my economic positions. Those that are around here know I’ve had these beliefs for quite some time now.

I don’t have much. I don’t make much. But that’s all on me. I don’t expect that you or anyone else should lose a dollar so I could be a dollar richer.

[thethe]

I don’t have much. I don’t make much. But that’s all on me. I don’t expect that you or anyone else should lose a dollar so I could be a dollar richer.

I expect to create conditions whereby people like yourself can get paid more to do whatever it is you're doing or find some form of non-laptop centric work that can pay you a respectable wage.

Thats not all too hard - Just have to understand where the majority of the excess is going right now.

[sturg33]

I expect to create conditions whereby people like yourself can get paid more to do whatever it is you're doing or find some form of non-laptop centric work that can pay you a respectable wage.

Thats not all too hard - Just have to understand where the majority of the excess is going right now.

#Obama24

[sturg33]

They don't do themselves any favors

[Garmel]

[chop2chip]

They don't do themselves any favors

I do think there’s ways women can be better supported (and indirectly better compensated), with respect to having careers and beings moms. At my work I have seen women whose career’s stall out in their late 20’s when they begin having kids between maternity leave, childcare ( if your kid is ever sick that’s a week they aren’t going to daycare). Basically, if a woman has three children that’s 5-8 years where they won’t be progressing in their career.