Inequality, opportunity, growth…and not “giving up the hole.”

October 16th, 2014 at 10:44 am

Where the “hole” is wage stagnation. Over at PostEverything.

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2 comments in reply to "Inequality, opportunity, growth…and not “giving up the hole.”"

  1. smith says:

    If increased wages don’t come from the top (which reduces inequality), where do they come from? I’m not saying there isn’t productivity growth available for everyone, albeit 1.5% to 3% per year. But if those increases are currently going to the top incomes (1% and .1%) then the only way to handle stagnant wages is to take from them. Higher inflation, except for those heavily in debt, can do just the opposite, as witness Krugman’s call for inflation to reduce wages in southern Europe. If I’m manager of a company, I take what I can get. Higher marginal rates would reduce the incentive to shortchange workers. There’s something else staring everyone in the face causing stagnant wages, which no one seems to notice…

  2. Larry Signor says:

    Inequality in opportunities leads to inequality of outcomes…is there something I am missing here that prevents this concept from being a “slam dunk”? If your team gets 4 free foul shots and possession of the ball before the game starts, will this not alter the outcome of the game? There is certainly an ability gap among economic actors, but is it not affected by opportunity? Just because the economy is improving does not mean we have solved the problems that got US here.