Re:U.S. personal income posts first drop in over three years
by dragonwriter on Friday March 01, 2019 @12:42PM
(#19283315)
> Wealth inequality is productivity inequality
No, it's not.
Income inequality would be, in an idealized state where you both had a perfect market (with all the ideal rational choice theory attributes like perfect information and perfect utility maximization) andp erfectly equal initial distribution of wealth. Or, at least, the instantaneous income differential at the first moment would be, as well as the resulting wealth inequality; once you are past that you have wealth inequality which means that differences in market clearing price even in a perfect market no longer perfectly reflect differences in utility produced, because the interests of the wealthier participants are favored, so neither income inequality nor it's resulting wealth inequality reflect productivity, and with mortality and inheritances wealth inequality is even farther from a reflection of income inequality after the first generation.
Being born a Trump—or even a member of the first world middle class—puts you pretty high on the world distribution of wealth from day one, and your personal productivity has no contribution to that.
No, it's not.
Income inequality would be, in an idealized state where you both had a perfect market (with all the ideal rational choice theory attributes like perfect information and perfect utility maximization) andp erfectly equal initial distribution of wealth. Or, at least, the instantaneous income differential at the first moment would be, as well as the resulting wealth inequality; once you are past that you have wealth inequality which means that differences in market clearing price even in a perfect market no longer perfectly reflect differences in utility produced, because the interests of the wealthier participants are favored, so neither income inequality nor it's resulting wealth inequality reflect productivity, and with mortality and inheritances wealth inequality is even farther from a reflection of income inequality after the first generation.
Being born a Trump—or even a member of the first world middle class—puts you pretty high on the world distribution of wealth from day one, and your personal productivity has no contribution to that.