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Debunking the top three myths about income inequality
CNBC ^ | Published: Tuesday, 28 Jan 2014 | 12:11 PM ET | By: Robert Frank

Posted on 01/30/2014 7:21:03 AM PST by SeekAndFind

In his State of the Union Address on Tuesday night, President Barack Obama is expected to take sharp aim at wealth inequality.

He'll propose a hike in the minimum wage, extended unemployment benefits, and more funding for education and skills improvement.

He is also likely to contribute to several persistent myths about the increasing gap between the rich and everyone else.

There is no question that income inequality in America is high compared with other countries as well as with the three decades in the U.S. after World War II. And a consensus is growing among business leaders, politicians and even conservatives that more must be done to help those at the bottom better adapt to a more global, technology-driven world.

But as the country wrestles with one of the most fundamental issues of our time, three key myths beg to be corrected.

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


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: income; inequality; inequalitygodzilla; myths; sotu; stateoftheunion

1 posted on 01/30/2014 7:21:03 AM PST by SeekAndFind
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To: SeekAndFind

The article highlights the 3 myths about income inequality:

1. Inequality is rising to the highest levels ever

2. Helping the poor will solve inequality

3. The rich are a permanent club choking off opportunity for the rest.


2 posted on 01/30/2014 7:22:11 AM PST by SeekAndFind
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To: SeekAndFind

To both parties:

How about bringing jobs home, to America?

Just asking.

(Hoping it is the GOP which takes the initiative and moves on this, now.)


3 posted on 01/30/2014 7:23:55 AM PST by Cringing Negativism Network ( http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: SeekAndFind

The government is the greatest violator in the wealth accumulation.


4 posted on 01/30/2014 7:24:13 AM PST by mountainlion (Live well for those that did not make it back.)
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To: SeekAndFind

Someone at CNBC is asking to be audited.


5 posted on 01/30/2014 7:24:21 AM PST by brownsfan (Behold, the power of government cheese.)
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To: Cringing Negativism Network

“To both parties:

How about bringing jobs home, to America?

Just asking.

(Hoping it is the GOP which takes the initiative and moves on this, now.)”

Where have you been?! I learned right here on FR that it’s free market economics and it’s good. The Chinese will increase their standard of living, and open markets to us. In the long run there will be more jobs, not less jobs, and our economy will flourish.

Right?


6 posted on 01/30/2014 7:26:12 AM PST by brownsfan (Behold, the power of government cheese.)
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To: Cringing Negativism Network

RE: How about bringing jobs home, to America?

Welcome back to FR, haven’t heard your mantra (without a solution) in this thread for some time :)


7 posted on 01/30/2014 7:28:02 AM PST by SeekAndFind
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To: brownsfan

“The Chinese will increase their standard of living, and open markets to us.”

-

On what do you base this dreamy scenario.

America has sold out our manufacturing base. China took it.

Period. We got nothing in return.

We are shrinking, and giving away American manufacturing. We get nothing in return.

We cannot buy things in China, except as minority investors.

We cannot buy land in China.

I see NO sign anywhere, that China has any intention of giving anything back to America.

It is take, take, take from China.

We need to COMPETE.

Bring back American manufacturing now.


8 posted on 01/30/2014 7:35:11 AM PST by Cringing Negativism Network ( http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: SeekAndFind

3 myths?

1. Bush’s fault
2. Tea Parties fault
3. GOP’s fault

The inequality chasm has grown under Obama’s watch and the Democrats spending spree and attacks on the middle class.


9 posted on 01/30/2014 7:37:24 AM PST by al_c (Obama's standing in the world has fallen so much that Kenya now claims he was born in America.)
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To: Cringing Negativism Network

“On what do you base this dreamy scenario.”

On the many “lessons” I was given here on FR. Some of them quite heated, and I was often invited to go “back to the DU” when I doubted that the open markets and economic boom would appear.

I told them we’d end up with a communist as president if we kept enabling the sell off of our manufacturing base. I thought that communist would be Hillary. I only missed by a little.

I have a question for the free traders.... how’s it working for you?


10 posted on 01/30/2014 7:40:41 AM PST by brownsfan (Behold, the power of government cheese.)
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To: Cringing Negativism Network

So is your solution to have the government order companies to cease buying goods manufactured overseas? Would have the government order companies build factories here?


11 posted on 01/30/2014 7:44:41 AM PST by jps098
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To: brownsfan

Oh sorry. I misinterpreted your post as being for “free trade”.

We are on the verge of a very serious problem.

China has FIVE TIMES as many people, as we do. Five times.

China makes what we buy. China does NOT buy what we make.

China is winning.

America wake up. China is becoming a bigger problem every single day.

Every day.


12 posted on 01/30/2014 7:45:22 AM PST by Cringing Negativism Network ( http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: jps098

I am just pointing out China now exports approximately four times as much to the USA, as they import from the USA, and that number has grown for two entire decades.

China now sells us more than 400 billion every year. And the gap is constantly growing.

China buys just over 100 billion from America.

We have exported such a huge segment of America’s manufacturing base, we no longer really make stuff.

What is supporting our economy? What?

America wake up.

Bring back American manufacturing, and American jobs.

Republicans get with the program.

Bring back American JOBS.


13 posted on 01/30/2014 7:50:30 AM PST by Cringing Negativism Network ( http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: Cringing Negativism Network
You say bring back jobs, which I agree would be nice, but you offer no plan to make it happen, other than insist that it happens.
14 posted on 01/30/2014 7:55:13 AM PST by jps098
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To: Cringing Negativism Network

*** Oh sorry. I misinterpreted your post as being for “free trade”.

...

China is winning. ***

It’s ok, my post was dripping with sarcasm, which is hard to detect on an internet forum.

China is winning, as I said they would. The free traders are still around, they have just clammed up for some reason.


15 posted on 01/30/2014 7:55:57 AM PST by brownsfan (Behold, the power of government cheese.)
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To: SeekAndFind

My son s an economics major at Texas A&M. He has to take a diversity class, and he chose a class called Poverty and Inequality.

I was thinking the class was going to be very ouberal, and I googled the professor and the class.

Well, I was wrong. The professor wrote a book about how social programs do not really help the poor.

My son says the professor s great and the class is very interesting.


16 posted on 01/30/2014 7:56:40 AM PST by luckystarmom
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To: SeekAndFind

And there are so many words that the left twists to their advantage.

For example, what is “helping” in the context of helping the poor? Does that just mean giving them money that they confiscate from people who earned it? Probably. But that doesn’t and never will “help” the poor.


17 posted on 01/30/2014 7:57:31 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: SeekAndFind

That’s probably the first time I’ve seen it in about... an hour?


18 posted on 01/30/2014 7:58:04 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: Cringing Negativism Network

You need some Sowell, my FRiend...

Here, find the section on “comparative advantage”.
http://www.altfeldinc.com/pdfs/InternationalEconomics101.pdf

You’re getting close to it with your analysis of China having 5 times the number of people we have. But you come to the wrong conclusion.


19 posted on 01/30/2014 8:00:47 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: jps098

I have presented my plan to make it happen, several times.

For the most part, I have found I have alienated FReepers with my idea.

However here goes:

I believe America needs to implement serious, and universal import tariffs.

However I believe we need one, universal import tariff rate on everything imported. Oil. Food, and technology.

One universal input tariff.

I won’t spend a lot of time on the specifics, because we need to discuss those, but we really really need to start to support American manufacturing.

We need to support American manufacturing soon.

Now.


20 posted on 01/30/2014 8:06:52 AM PST by Cringing Negativism Network ( http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: SeekAndFind

Do the claimed figures on inequality exclude the taxes paid by those at the top and welfare received by those at the bottom? If the leftists say “things are unequal and that money must be redistributed” and tax the rich to give to the poor, but doesn’t count that redistribution as solving the inequality then inequality as calculated will get even worse as those at the bottom work less to get more welfare, while some at the top will have to work harder to earn more to overcome the taxes (or just shrug and slide on down the Laffer curve to a nice untaxed vacation rather than working for the government).


21 posted on 01/30/2014 8:07:02 AM PST by KarlInOhio (Republican amnesty supporters don't care whether their own homes are called mansions or haciendas.)
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To: SeekAndFind

It’s easy to debunk myths because they are myths. How about dealing with the realities?


22 posted on 01/30/2014 8:47:58 AM PST by ex-snook (God is Love)
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To: Cringing Negativism Network

The job exporters have their allegiance to money not the country. Tough if that means American are unemployed and in recession and the government must increase taxes to support them and create a welfare class.


23 posted on 01/30/2014 8:55:06 AM PST by ex-snook (God is Love)
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To: SeekAndFind
It's very simple to me (maybe too simple): Money makes money. Therefore, when there is a recession, those who still have money to invest do fine, and those without money to abysmally, slowly getting to the point where they need government aid for everything.
24 posted on 01/30/2014 9:15:04 AM PST by firebrand
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To: SeekAndFind

bkmk


25 posted on 01/30/2014 10:14:40 AM PST by Sergio (An object at rest cannot be stopped! - The Evil Midnight Bomber What Bombs at Midnight)
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