Is the Wealth Gap Widening?

[s243a]

I hear a lot of people say the gap between the rich and the poor is widening. We here it so much it must be true right? Well, I am not convinced. Take a few minutes and watch this video and comment.

http://www.youtube.com/watch?v=hVimVzgtD6w&mode=related&search=

 

[tracy]

Very interesting. I would love to take his course! What a good speaker. The changes in fertility rates and life expectancy really surprised me. I was also very surprised to see the diversity in countries in the same area and incredible diversity in each country. The rich in a poor country live comparably to the poor in another.

 

[Toro]

Yes.

 

[s243a]

Yes.

The video would suggest otherwise. Well, let me be more clear. In absolute terms yes the wealth gap is widening but if we look at the ratio of salaries between the rich and the poor it seems to be staying round the same in the United States while world the wealth gap seems to be shrinking. I wonder if the GDP used in the video was adjusted for inflation. If it was then everyone is getting richer. Regardless the “growing wealth gap” seems to be more of a political tool then a statistical reality. Again we are left with the question does the end justify the means.

 

[tracy]

The video would suggest otherwise. Well, let me be more clear. In absolute terms yes the wealth gap is widening but if we look at the ratio of salaries between the rich and the poor it seems to be staying round the same in the United States while world the wealth gap seems to be shrinking. I wonder if the GDP used in the video was adjusted for inflation. If it was then everyone is getting richer. Regardless the “growing wealth gap” seems to be more of a political tool then a statistical reality. Again we are left with the question does the end justify the means.

He did caution that the danger of using simple averages like the GDPs was that it ignores the great diversity in those numbers. The GDP for every country may be increasing, but that doesn't mean the earnings of each person is increasing. For some it could be, but for others their real wage when adjusted for inflation may be staying the same or even dropping. He seemed to be saying that more people will be getting into the middle of the income graph, but that doesn't mean the income gap isn't still HUGE. The middle of the graph included those living in poverty.

 

[gopher]

There have been several articles in various newspapers which cite government stats to prove the point that the gap is ever widening. This does not mean that it only happened under Bush. In fact, the stats prove that it has always been growing since the late 70s. However, the gap has snowballed in size since Bush took office. The harmful consequences are still being evaluated at this time and we will know more as time progresses.

Suffice it to say that every society needs a solid middle class. Let's hope that ours does not diminish any further.

 

[Toro]

I hear a lot of people say the gap between the rich and the poor is widening. We here it so much it must be true right? Well, I am not convinced. Take a few minutes and watch this video and comment.

http://www.youtube.com/watch?v=hVimVzgtD6w&mode=related&search=

I've seen this.

This is correct. Around the world, the gap is shrinking. Thanks to free trade and globalization.

In the US, it has been rising.

http://runningofthebulls.typepad.com/toros_running_of_the_bull/2007/03/income_inequali.html