The inequality bed-wetters are misleading you.
The inequality police are worried that we are living in a new Gilded Age. We should be so lucky: Between 1880 and 1890, the number of employed Americans increased by more than 13 percent, and wages increased by almost 50 percent. I am going to go out on a limb and predict that the Barack Obama years will not match that record; the number of employed Americans is lower today than it was when he took office, and household income is down. Grover Cleveland is looking like a genius in comparison.
The inequality-based critique of the American economy is a fundamentally dishonest one, for a half a dozen or so reasons at least. Claims that the (wicked, wicked) “1 percent” saw their incomes go up by such and such an amount over the past decade or two ignore the fact that different people compose the 1 percent every year, and that 75 percent of the super-rich households in 1995 were in a lower income group by 2005. “The 3 million highest-paying jobs in America paid a lot more in 2005 than did the 3 million highest-paying jobs in 1995” is a very different and considerably less dramatic claim than “The top 1 percent of earners in 1995 saw their household incomes go up radically by 2005.” But the former claim is true and the latter is not.
Paul Krugman, who persists in Dickensian poverty, barely making ends meet between six-figure sinecures, is a particularly energetic scourge of the rich, and he is worried about conspicuous consumption: “For many of the rich, flaunting is what it’s all about. Living in a 30,000 square foot house isn’t much nicer than living in a 5,000 square foot house; there are, I believe, people who can really appreciate a $350 bottle of wine, but most of the people buying such things wouldn’t notice if you substituted a $20 bottle, or maybe even a Trader Joe’s special.” In an earlier piece on the same theme, he urged higher taxes as a way to help the rich toward virtue: “While chiding the rich for their vulgarity may not be as offensive as lecturing the poor on their moral failings, it’s just as futile. Human nature being what it is, it’s silly to expect humility from a highly privileged elite. So if you think our society needs more humility, you should support policies that would reduce the elite’s privileges.” That is, seize their money before they order the 1982 Margaux.
more rusty bed springs by I.P. Nightly
The Gelded Age | National Review Online
more rusty bed springs by I.P. Nightly
The Gelded Age | National Review Online