Does Income Inequality Matter?

theodp is concerned about the following: "Alarmed by Goldman Sachs CEO Lloyd Blankfein's record-setting $53M bonus, Charles Wheelan (aka The Naked Economist) argues that income inequality matters. Wheelan notes that the Gini Coefficient (a measure of income inequality) for the U.S. has been moving away from countries like Japan and Sweden and closer to that of Brazil, where the murder rate is 5X that of NYC and crime is materially impacting GDP."

Comments

Re:Correlation... causation

[spun]

This is true, in America and other places with high income inequality. It doesn't seem to be true in really poor countries, where even starving people seem to stick together. Why do you suppose that is?

Re:Correlation... causation

[Archangel Michael]

[quote]There are -some- poor folks who live off the charity of others, and there are -some- rich people who live off their connections.[/quote]

Indeed. That doesn't mean a thing. I give my charity to people who deserve it because they are trying to make their life better, like the 17 YO girl at my daughter's school who doesn't get enough to eat, because her parents either cannot or will not buy food. I give to her, rather than the "will (not) work for food" bums on the corner, because she is trying to do better, and isn't afraid to work hard to get a better life. She's a good kid that needs a chance at life.

It makes me feel good knowing that it isn't wasted, and actually is truly appreciated. She doesn't know who gives her the food, all she knows is that the food is waiting for her at school when she gets there.

"there is an extremely large group of hard working middle class folks propping up the economy here, if you really worked hard and came from the background you say you did, you would know that."

Indeed I do. However there is a large underclass of people who believe that life entitles them to 2 tvs, a microwave, nike shoes, xbox and a Nintendo, but don't feel like working for them. I don't own a Wii, or an Xbox or whatever. My shoes are $20 sneekers. My income last year was $40k, and I am debt free (LITERALLY). I don't own a credit card, make payments on cars or anything else. I have money set aside for retirement. I live in California and have my whole life.

I am unique among my peers. I don't have a bunch of stuff, and live a plain life. It is something I wouldn't trade for anything. WHY? Because I am satisfied with what I have, and don't compare myself to the Jones next door.