tag:blogger.com,1999:blog-8270906704031641534.post5826525979208124430..comments2023-09-10T08:14:36.455-07:00Comments on The Animal Spirits Page: Further results on income inequalityAnonymoushttp://www.blogger.com/profile/06852145145315416007noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8270906704031641534.post-34304262351185802932010-05-26T02:28:01.432-07:002010-05-26T02:28:01.432-07:00Yeah. I think there probably is an "optimal&q...Yeah. I think there probably is an "optimal" (equilibruim?) level of income inequality. It's really hard for people to fathom that there are some "good" things about income inequality. I think it is a crucial part of capitalism.<br /><br />I would really like to see graph of real per capita personal disposable income vs. the Gini Coefficient. That would answer a lot of questions I have about income inequality.<br /><br />Do you have a formal education in Economics? Just curious. You seem like you know your stuff!!<br /><br />Your Animal Spirits hypothesis is interesting. I dig the graphs!! Then again, I love all graphs. I'm kind of weird that way........hehehehheTrenton Ulysses Rockhttps://www.blogger.com/profile/15475998268065029226noreply@blogger.comtag:blogger.com,1999:blog-8270906704031641534.post-49642631532688624452010-05-22T07:43:14.241-07:002010-05-22T07:43:14.241-07:00I agree that it would better if government did not...I agree that it would better if government did not get involved in redistributive policy. However, that belief stems from my belief that the distribution of income results from a much deeper social contract based in the values of a society. Further, I believe, and there is support for this in the behavioral economics literature (sorry I don't have the reference handy), that there is an "optimal" degree of income inequality in that it produces the greatest efficiency, cooperativeness, and social welfare--that we have plainly exceeded.<br /><br />So I find arguments against any redistributive policy by government at this juncture extremely distasteful. I put the Austrians on the side of the status quo in this regard, while crediting their analysis of the credit boom as correct. Without redistribution, we very well may enter a self-perpetuating neo-feudalism that represents a virtually inescapable sub-optimal equilibrium that could go on for generations.<br /><br />Thanks for your comment.Anonymoushttps://www.blogger.com/profile/06852145145315416007noreply@blogger.comtag:blogger.com,1999:blog-8270906704031641534.post-33020904471119467682010-05-22T04:11:03.607-07:002010-05-22T04:11:03.607-07:00You should read some Ludwig von Mises books to get...You should read some Ludwig von Mises books to get a different perspective on income inequality.<br />It's not an important issue and Govt. policy should not be made to "level the playing field"...IMHO<br /><br /><br /><br />"In talking about equality and asking vehemently for its realization, nobody advocates a curtailment of his own present income."<br />Ludwig Von Mises<br /><br />"It’s true: greed has had a very bad press. I frankly don’t see anything wrong with greed. I think that the people who are always attacking greed would be more consistent with their position if they refused their next salary increase. I don’t see even the most Left-Wing scholar in this country scornfully burning his salary check. In other words, "greed" simply means that you are trying to relieve the nature given scarcity that man was born with. Greed will continue until the Garden of Eden arrives, when everything is superabundant, and we don’t have to worry about economics at all. We haven’t of course reached that point yet; we haven’t reached the point where everybody is burning his salary increases, or salary checks in general." <br />Murray N. Rothbard<br /><br />"Inequality of wealth and incomes is an essential feature of the market economy. It is the implement that makes the consumers supreme in giving them the power to force all those engaged in production to comply with their orders. It forces all those engaged in production to the utmost exertion in the service of the consumers. It makes competition work. He who best serves the consumers profits most and accumulates riches."<br />Ludwig Von Mises<br /><br />http://mises.org/efandi/ch9.aspTrenton Ulysses Rockhttps://www.blogger.com/profile/15475998268065029226noreply@blogger.com