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Re:IT is the cause of rising income and wealth inequality si... by klodolph on Monday August 07, 2017 @04:51AM (#14946106)
My guess is it would be more of a logistic curve (S-shaped) rather than logarithmic. $1 does not make you much happier than 1ยข, but $50k/year is a big step up from $30k/year.

At the low end, at some point you can afford to have a roof over your head, and an extra $20 might mean that you're eating much better for a whole week, or you can buy new shoes, or whatever. But if you're homeless, $20 won't feed you for very long or get you out of the rain for very long.

At the mid range, a salary bump from $30k to $50k might make a world of difference if you're trying to raise a family. It might mean that you're not worrying about how you're going to pay for groceries, or it might mean that your kids are always wearing reasonable, well-fitting clothing.

Re:IT is the cause of rising income and wealth inequality si... by yorwba on Monday August 07, 2017 @08:53AM (#14947130)
I think you are right that at very low levels, the same sum of money becomes much less useful, but I think you are wrong about the level at which that happens.

A few years ago, I met a beggar at a bus stop, who said that the store across the street had a sleeping bag for 50% off until the end of the week, and he was hoping that he would be able to buy it for the winter. I didn't have much money on me myself (basically just the bus fare), but I gave him what I had and walked home instead. To him, those five-ish euros meant not freezing in his sleep, while to me, they only meant a bit of unplanned exercise.

If you have nothing at all, every little bit of money gives you access to some tangible improvement of your situation. But if you have much less than nothing, and every cent of additional income just serves to lower a gigantic debt, there isn't really much incentive to earn more when it makes no significant difference in the end. This is probably one of the reasons bankruptcy law allows discharging unpayable debts, because otherwise debtors might not be motivated to do something about the debts they could repay.

Re:IT is the cause of rising income and wealth inequality si... by ben_w on Monday August 07, 2017 @05:51AM (#14946346)
At current exchange rates, $20 will provide 39 days worth of food to someone in the UK (assuming the only thing they care about it calories and not vitamins, as this is the Tesco Value Digestive Biscuits Diet โ€” I have no idea if homeless people would eat like that).
Re:IT is the cause of rising income and wealth inequality si... by JamesBarney on Monday August 07, 2017 @05:19AM (#14946237)
Why do you think going from 0k -> 20k makes less of a difference than 30k -> 50k?(And we're talking about consumption not production, so weird things like having government benefits removed don't factor in).
Re:IT is the cause of rising income and wealth inequality si... by klodolph on Monday August 07, 2017 @12:13PM (#14948619)
I'm saying that $3 -> $5 is less of a difference than $30k -> $50k.