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I Dream of GINI. Why so many people vote Democrat. Half of us are below average. OK, maybe only 47%
American Thinker ^ | 10/19/2012 | Randall Hoven

Posted on 10/19/2012 5:47:04 AM PDT by SeekAndFind

Imagine you are young and unattached -- unattached from everything: family, friends, country. A Martian takes you up in his spaceship and offers to set you down in one of two countries where you will have to make your way in life. All he tells you is that the average income in Country A is $49,000 and that of Country B is $40,900. You would probably pick A, right? It's 20% richer.

Now, what if your Martian host offered a bit more information? He gives you the distribution of incomes in those same two countries. In fact, he shows you this graph.



It looks like country A is still the preferred choice if you expect to be in the top half of the population. But if you expect to be in the bottom half, Country B looks more attractive.

Now your choice depends. It depends on where you see yourself with respect to the rest of the population. If you think you're above average, you'd pick Country A; if you think you're below average, you'd pick Country B, even though the average income of Country A is 20% higher. (All else equal, of course.)

Now think of yourself as a voter in Country A. Would you vote to continue your own country's economic policies, or would you vote for policies that would make your country more like Country B? Again, if you are in the top half, you'd prefer the status quo, but if in the bottom half, you'd want to be more like Country B (again, all else equal).

In fact, Country A is the U.S., and Country B is Sweden.

(Excerpt) Read more at americanthinker.com ...


TOPICS: Constitution/Conservatism; Culture/Society; Government; News/Current Events
KEYWORDS: democrats; gini; iq

1 posted on 10/19/2012 5:47:13 AM PDT by SeekAndFind
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To: SeekAndFind
Sweden is not all that representative of Europe and should not be compared to a country the size of the U.S. For one thing, Sweden's population (9 million) is not even 3% that of the U.S. The U.S. has 10 states with larger populations. A better comparison with the U.S. (314 million) would be to France (64 million) or to the European Union as a whole (503 million). Here are those comparisons.



France is fairly representative of the EU as a whole. The top three quintiles are generally better off in the U.S. than in France or the EU. All else equal, one would expect the majority of voters in the U.S., about 60% of them, to want to keep U.S. economic policies as opposed to adopting France's or the EU's.

The key concept here is the possible explanation of why a certain segment of the population would be willing to accept a smaller GDP, meaning a less wealthy nation overall, if that wealth were spread more evenly. We as a country are about 20% to 40% richer than Sweden, France, and the EU. But about 40% to 50% of us would be better off, as individuals, with the economy of one of those other countries (all else equal).
2 posted on 10/19/2012 5:49:57 AM PDT by SeekAndFind
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To: SeekAndFind

Look at the "Obama Phone" lady. She's pretty clearly a couple standard deviations below normal. I'm guessing her IQ is in the low 70s. Pretty safe to say that she would choose Country B -- but I don't imagine she could find Sweden, France, or Europe on a map.

3 posted on 10/19/2012 5:59:04 AM PDT by ClearCase_guy (Global Warming is a religion, and I don't want to be taxed to pay for a faith that is not mine.)
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To: SeekAndFind
Forget all the BS about fairness, justice and equality - people vote their own economic interests, period.

Republicans rely on their own industry, democrats rely on the industry of others.

4 posted on 10/19/2012 6:04:49 AM PDT by skeeter
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To: SeekAndFind

A novel and cool way of looking at this issue!

Thanks!


5 posted on 10/19/2012 6:06:27 AM PDT by Nervous Tick ("You can ignore reality, but you can't ignore the consequences of ignoring reality.")
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To: ClearCase_guy

The “Obama Phone” lady would probably choose A because she prefers that line’s color.


6 posted on 10/19/2012 6:06:29 AM PDT by ken in texas (I was taught to respect my elders but it keeps getting harder to find any.)
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To: ClearCase_guy

Great... you’re promoting “The Bell Curve”...
What’s next?
The Turner Diaries?
The Origin of Species (by Means of Natural Selection, or the Preservation of Favoured Races in the Struggle for Life)

:)


7 posted on 10/19/2012 6:08:40 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind

Averages are misleading by nature. The graphs illustrate that. Must also use “median” as well as the “mean”


8 posted on 10/19/2012 6:11:28 AM PDT by vortec94
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To: vortec94

Also be aware that the graph is a factually incorrect depiction of income. Towards the right end, up to about 80% it’s right, but the income curve takes a hockey-stick jump somewhere in the 90’s. At 95% the real curve is off this chart, and at 98% it’s well off the top of your computer screen.


9 posted on 10/19/2012 6:16:03 AM PDT by FRForever (http://www.constitutionparty.com)
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To: SeekAndFind

Great analysis. Part of what made American “exceptional” historically was that regardless of their current position in the income distribution, most Americans saw the U.S. as a land of opportunity where hard work could get them into the top half of the income distribution. Consequently, there was not a lot of resentment of the rich or eagerness to redistribute their wealth. Barack Obama has done his level-headed best to sow class envy and to convince people that the government should protect them from the vicissitudes of life, all on grounds of “fairness.”


10 posted on 10/19/2012 6:16:16 AM PDT by DrC
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To: SeekAndFind

This article doesn’t even really tell the true story. You have to look at the income dynamic over time. Its the classic case of the developing Capitalist economy. If your income was $10,0000 per year in 1950, would you rather have it be $20,000 per year in 1970 or $25,000 per year in 1970? The answer is easy.

However, now superimpose this graph over that decision. Would you rather have your income be $20,000 per year if the highest income in the country was $70,000 per year, or would you rather have your income be $25,000 per year if the highest income in the country was $200,000 per year?


11 posted on 10/19/2012 6:16:31 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: SeekAndFind

Most people move up, to the right. Heck I started at 0 and now I am at the 95th percentile according to this graph. THIS PREMISE IS FALSE, there is MOVEMENT both up and down the scale in the USA. In Sweden not so much probably. The chick hotness factor is more important quality of life issue in Sweden.


12 posted on 10/19/2012 6:23:18 AM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: SeekAndFind
Let's get Soetoro installed as King of Country B. (He'd really like that)
13 posted on 10/19/2012 6:27:43 AM PDT by immadashell
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To: SeekAndFind

Is that spread between $30-40K REALLY enough to sway that many people?


14 posted on 10/19/2012 6:36:12 AM PDT by Buckeye McFrog
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To: SeekAndFind

It all boils down to two words. Personal insecurity. It is learned early as a child by poor parenting skills then reinforced in the public school system. Most of these people are comfortable as parasites. Once they hit an absolute bottom and must relay on themselves for survival the process reverses. Look at the great depression. That era created a much stronger self reliant individual. Today however, the government policies will eventually kill the host.


15 posted on 10/19/2012 6:37:42 AM PDT by mosaicwolf (Strength and Honor)
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To: SeekAndFind
And here is where the DemonRatz “Victim” strategy comes into play. Convince people that the deck is stacked against them because they are ______ (fill in the blank)and they will always be on the losing end.
16 posted on 10/19/2012 6:39:23 AM PDT by Feckless (I was trained by the US << This Tagline Censored by FR >> ain't that irOnic?)
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To: FRForever
Also be aware that the graph is a factually incorrect depiction of income. Towards the right end, up to about 80% it’s right, but the income curve takes a hockey-stick jump somewhere in the 90’s.

If you read the article through to the end, the author states that it's an approximation. He also shows the actual IRS data graph, which does have that hockey stick at the end (as it would have to for a power law distribution).

17 posted on 10/19/2012 6:48:12 AM PDT by Pearls Before Swine
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To: Feckless

David Kupelian’s “How Evil Works” goes into why this is an effective strategy.

People WANT to be told that their less than optimal situation is not of their own making, and politicians take advantage of this desire to not take responsibility.


18 posted on 10/19/2012 7:01:40 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind

Great post. You also have to figure in “guilt”. I know many wealthy individuals that think it is only fair that wealth be redistributed. I always tell them to feel free to send more money in on their own and to leave mine alone but to no avail.


19 posted on 10/19/2012 7:51:27 AM PDT by MattinNJ (Romney? Really? Seriously?)
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To: SeekAndFind

Great post. You also have to figure in “guilt”. I know many wealthy individuals that think it is only fair that wealth be redistributed. I always tell them to feel free to send more money in on their own and to leave mine alone but to no avail.


20 posted on 10/19/2012 7:51:31 AM PDT by MattinNJ (Romney? Really? Seriously?)
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To: MattinNJ
You also have to figure in “guilt”. I know many wealthy individuals that think it is only fair that wealth be redistributed.

It's not really guilt, it's envy deflection, the whole purpose of limousine liberalism. It's an appeasement strategy meant to maintain the most wealth possible, even enjoy it openly, and not be looted of everything. Appeasement is the optimal strategy when heavily outnumbered. It works like a charm which is why they do it. Limousine liberalism was invented long ago by wealthy kings. Talk is cheap. What people say and what they really think and do are very different things.

21 posted on 10/19/2012 8:39:54 AM PDT by Reeses
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