Joined: 28 Dec 2005
|Posted: Mon Jul 20, 2015 7:52 am Post subject: Inequality
Some income inequality seems good for an economy.
For example, comparing two most similar economies, the U.S. and the E.U., U.S. income inequality is greater and per capita GDP is over $10,000 a year more than the E.U..
Of course, there may be too much income inequality in the U.S. and too little in the E.U., both reducing GDP growth.
Winston Churchill: “The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”
Spencer, I stated before, since the late 1960s, the real minimum wage has declined 25% in the fast food industry, while productivity increased 25%. So, it’s possible, lower wage workers are underpaid.
Canada is more similar to the U.S. than the E.U.. However, Canada has fewer people than California. Its per capita GDP is slightly less than the U.S.. I doubt Canada is more wealthy. For example, average housing square feet is much less in Canada than the U.S.. Perhaps, there are fewer cars or smaller cars and fewer shopping malls per capita in Canada too.
Too much or too little government can have a negative effect on living standards. Large Western European countries, including Britain, France, Germany, Italy, and Spain, all have per capita GDPs over $10,000 a year less than the U.S..
The U.S. could afford inefficiencies after WWII, because the U.S. had a larger share of the global economy, while Europe and Japan rebuilt. They’re much more competitive today. U.S. economic performance has improved substantially, since the 1970s. including living, labor (or workplace), and environmental standards.
Menzie Chinn, productivity growth in government hasn’t kept up with the private sector, although some parts of government are better than others.
For example, if fast food restaurants were run by the government, you’d wait longer, receive lower quality, pay a higher price, etc..
Efcdons, why do you love bad government?
I recall going to the post office to buy stamps. They told me they’re out of stamps. I was wondering – don’t they make money on stamps? don’t they mail letters, because of stamps? I’ll need stamps.
I also recall going to the DMV. They told me my Colorado drivers license wasn’t good enough for a California drivers license and I needed a birth certificate. So, I came back and they seemed to be making sure everything was perfect. However, when I went for my picture, I noticed my last name was spelled wrong and told the guy working there. He smiled and darted away. After I received my new license, I was very happy to get out of there, after three hours, and didn’t notice my last name was still spelled wrong. Now, I get all my mail under a wrong name, if people can buy stamps at the post office.
Why are input costs for the public school system so high when output is so poor, why do patients at the VA hospital get so little help, after waiting so long, why does it cost so much for the government to collect taxes, etc.?