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Politics : Formerly About Advanced Micro Devices
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To: combjelly who wrote (702941)3/6/2013 4:49:14 PM
From: Tenchusatsu  Read Replies (2) of 1572887
 
CJ,
Yet we have had wars and inflation since then and no wage compression.
We haven't had anything on the scale of WWII. The reasons are obvious. No one thinks we should have to "stimulate" an economy by starting WWIII.

Inflation happened because Keynesian economics started faltering. No one thought until then that inflation could occur in periods of economic stagflation. Poor public policies are to blame for that.

It's easy to "spread the wealth" when production is running on full steam. Unfortunately in America, we've shifted toward a consumer-oriented economy. We've driven out the production (look at all the outsourcing) and told people it's their patriotic duty to spend. Only problem is that consumption always ends up using things up.

That, in my unqualified opinion, is what's causing the wealth gap to increase in America. Progressive tax rates only treat the symptom, and I argue that it doesn't even do that very well. When people stop asking "Where's mine" and start asking how they can be more productive and more relevant in today's economy, that's when we'll see prosperity for everyone and not just the super-rich speculators.

Hence the reason why I think just looking at wage compression, wage divergence, and income tax rates in a vacuum is useless. That truly ignores the fundamental drivers for economic growth.

Tenchusatsu
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