Income inequality

[Plane]

http://mic.com/articles/99798/one-chart-about-income-inequality-that-will-make-your-blood-boil

Interesting trends.

The buying power of the common man in absolute terms is still rising, but his proportional share of the total is falling against the very wealthy.

That is the facts.

The reason behind these facts is debatable .

This article blames some things that I would not.


I think that the trend for small businesses to become a smaller and smaller proportion of the economy, means that there are fewer small scale wealthy but no fewer lower income employees.

[Plane]

Oh... I am sorry, it turns out that the economist that compiled this data is stupid.


http://pavlina-tcherneva.net/2-key-charts.pdf

.....So, take your pick: would
you like the private sector be in surplus or the government? You cannot have
both. Presumably, we’d prefer the private sector to save and accumulate financial
assets, which means that the government must run a deficit and accumulate
financial liabilities... Because most people do not think about this basic
accounting relationship,................

    No.

      Nothing prevents the private sector and the government from running deficit at the same time .

       

Pavlina R. Tcherneva, Ph.D.
 Assistant Professor of Economics, Bard College
Research Scholar, Levy Economics Institute
 
I am a macroeconomist conducting research in the fields of modern monetary theory and fiscal policy, with a focus on full employment. I have previously taught at Franklin and Marshall College and the University of Missouri–Kansas City and have conducted research at the University of Cambridge Centre for Economic and Public Policy, UK, the Levy Economics Institute, NY, and the Center for Full Employment and Price Stability, MO. I have collaborated with policymakers from Argentina, Bulgaria, China, Turkey, and the United States on developing and evaluating various direct job creation programs. 
 

     Sorry professor , you need a basic accounting course.

       If our government and several others consider her an expert on job creation ,this explains much.

[Xavier_Onassis]

Ideally, the lower 90% should receive  a greater share of the total than they npow do, and should invest it.

[Plane]

Ideally, the lower 90% should receive  a greater share of the total than they npow do, and should invest it.

Where are they receiving it from?

[Xavier_Onassis]

They would receive it from whomever is paying them for their services.
Of course.

[Plane]

  Indeed, and who is responsible for ensuring that all employers are equally able to make payroll?

[Xavier_Onassis]

That is their problem. I said IDEALLY. Let them figure that one out.

The profit margins of most businesses are HUGE compared to what they used to be.

[Plane]

That is their problem. I said IDEALLY. Let them figure that one out.

The profit margins of most businesses are HUGE compared to what they used to be.

Yes but think about why?

Regulation and taxation help eliminate marginal businesses.

Wal-Mart can cope with a lot more taxes, regulation and general complexity than Mom and Pop.


Big government is good for big business , tough on small and medium.


Whatever cannot make the margin in the US gets replaced by business in countries that are kinder to employers.

[Xavier_Onassis]

There should be more B corporations.

Big government is kinder to big business because of the sort of laws that were passed during the administration of assholes Reagan & Bush.

[Plane]

Can you name a law with that effect?

[Xavier_Onassis]

The tax code before Reagan would be one good example.

[Plane]

   Why is closing loopholes and reducing top rates bad for medium and small business?


    My thesis in this thread is that a more complex law of any type is an advantage to the bigger business which can devote more staff to such purposes.

[sirs]

BINGO

(for those that need a little clarity, that'd be sirs recognizing that someone else is right)

[Xavier_Onassis]

There are many, many loopholes and special deals that should be eliminated. The official tax RATE is relatively high, but the actual amount paid is lower than in most countries, because of all the loopholes.

[Plane]

Yes <if> there is enough expertise on staff to take full advantage .

Much easier for a bigger company.

So the Reagan push to simplify tax law should have been a move friendly to small businesses.