Income and Wealth Inequality: Crash Course Economics #17
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Date: 2022-04-04
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Comments and reviews: 10
Sam
All right. Let's say that wealth inequality is fixed and everybody in the world has 100$, right. I have this cool book that is going to sell 1 million copies and I price it at 10 dollars each. Well, it just sold 1 million copies and sure enough, I got $10 for each book sold. This means I now have $10, 000, 100 while everyone who bought the book has a $10 book and $90 to spare. Their wealth did not technically fluctuate, since the thing they bought is worth the exact amount they gave away (assets, but yet they are still considered poor, right? Should I just give my book out for free? I spent 2 years writing that book and you just want me to give up 2 years of my ENTIRE life for free? This is why the rich are getting richer, because they are coming up with things, like iPhones, AirPods, new computers, new video game consoles, while all of the poor who have High School diplomas and who never bothered to go to college and apply themselves in any application wonder why they are not getting 3 million dollars a year for just being alive. No, you are not entitled to a living wage just because you are a minority or a woman. You have to apply yourself in your job, work hard through blood, sweat, and tears to earn that livable income and then you might just realize that the world doesn't revolve around you: )
reply
All right. Let's say that wealth inequality is fixed and everybody in the world has 100$, right. I have this cool book that is going to sell 1 million copies and I price it at 10 dollars each. Well, it just sold 1 million copies and sure enough, I got $10 for each book sold. This means I now have $10, 000, 100 while everyone who bought the book has a $10 book and $90 to spare. Their wealth did not technically fluctuate, since the thing they bought is worth the exact amount they gave away (assets, but yet they are still considered poor, right? Should I just give my book out for free? I spent 2 years writing that book and you just want me to give up 2 years of my ENTIRE life for free? This is why the rich are getting richer, because they are coming up with things, like iPhones, AirPods, new computers, new video game consoles, while all of the poor who have High School diplomas and who never bothered to go to college and apply themselves in any application wonder why they are not getting 3 million dollars a year for just being alive. No, you are not entitled to a living wage just because you are a minority or a woman. You have to apply yourself in your job, work hard through blood, sweat, and tears to earn that livable income and then you might just realize that the world doesn't revolve around you: )
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Ben
The global wealth of the world is $260 trillion. North America and Europe have 20% of the population but have 67% of the wealth. China has 20$ of the population with 8% of the wealth. India and Africa have 30% of the population with 2% of the wealth. The industrial revolution caused some countries to explode in wealth and others stayed where they have been. The Lorenz curve shows what income inequality is. The poor are poor but in the middle class they have the biggest gap between perfect distribution and the actual distribution. The rich have the biggest portion of income. The poor are not getting poorer, the rich are just taking a bigger portion then before. The countries with the most income inequality have more violence and crime. The path we are going to take is unclear, but income inequality needs to be looked at.
reply
The global wealth of the world is $260 trillion. North America and Europe have 20% of the population but have 67% of the wealth. China has 20$ of the population with 8% of the wealth. India and Africa have 30% of the population with 2% of the wealth. The industrial revolution caused some countries to explode in wealth and others stayed where they have been. The Lorenz curve shows what income inequality is. The poor are poor but in the middle class they have the biggest gap between perfect distribution and the actual distribution. The rich have the biggest portion of income. The poor are not getting poorer, the rich are just taking a bigger portion then before. The countries with the most income inequality have more violence and crime. The path we are going to take is unclear, but income inequality needs to be looked at.
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rapturedmourning
Your apple example is really bad, and really a disservice to those who experience actual inequality. They guys who go out to the field and pick apples (or mow lawns, or serve fast food) make pretty close to the same money. One might make a little more with more experience or better performance. The guy who makes much more money is the entrepreneur who invested in an education, took out loans to buy the land, rented the truck, and took the time/risk to hire the guys to pick the apples. Now, is it fair that the entrepreneur now makes 10x or 100x more than the guys picking the apples, even though he mostly sits in the air conditioned truck? Maybe or maybe not, but let's discuss a realistic inequality rather than a straw man example.
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Your apple example is really bad, and really a disservice to those who experience actual inequality. They guys who go out to the field and pick apples (or mow lawns, or serve fast food) make pretty close to the same money. One might make a little more with more experience or better performance. The guy who makes much more money is the entrepreneur who invested in an education, took out loans to buy the land, rented the truck, and took the time/risk to hire the guys to pick the apples. Now, is it fair that the entrepreneur now makes 10x or 100x more than the guys picking the apples, even though he mostly sits in the air conditioned truck? Maybe or maybe not, but let's discuss a realistic inequality rather than a straw man example.
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Shantanu
I feel that taxing the rich would be a bane since there would be no incentive for them to work or earn anymore and would further discourage them. What governments can do is ensure that there are no income inequalities within the same sector/industry and ensure social justice. They can invest in the development of the socio-economic structure of the country, like improving education and not only providing employment but also improving the type of employment to a more advanced type (thus investing in skill development. Looking at Scandinavian countries with low inequalities and trying to learn and implement their ideas and policy could be one way.
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I feel that taxing the rich would be a bane since there would be no incentive for them to work or earn anymore and would further discourage them. What governments can do is ensure that there are no income inequalities within the same sector/industry and ensure social justice. They can invest in the development of the socio-economic structure of the country, like improving education and not only providing employment but also improving the type of employment to a more advanced type (thus investing in skill development. Looking at Scandinavian countries with low inequalities and trying to learn and implement their ideas and policy could be one way.
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belzamder
I'm really frustrated that when you talked about the shifting income and wealth equality you made mention to how people are making more than they are 20-30 years ago at all levels (the apple example) but you forgot to mention how the buying power of the dollar has plummeted. If you adjust for inflation and dollar value we have seen a HUGE gap develop. I'm a primary school teacher and I can barely afford rent with my partner. 2 full time workers both proffesionals and we can't afford to have a child. Yet 70 years ago 1 person working earned enough for a family. How much more explicit can you get.
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I'm really frustrated that when you talked about the shifting income and wealth equality you made mention to how people are making more than they are 20-30 years ago at all levels (the apple example) but you forgot to mention how the buying power of the dollar has plummeted. If you adjust for inflation and dollar value we have seen a HUGE gap develop. I'm a primary school teacher and I can barely afford rent with my partner. 2 full time workers both proffesionals and we can't afford to have a child. Yet 70 years ago 1 person working earned enough for a family. How much more explicit can you get.
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Ramon
Trying to fix wealth inequality is lunacy. People work and earn their salary or profit, why should they have to give it to anyone? How's that any different than barging into someone's home and stealing? Isn't the reasonable solution to help the less privileged get back on their feet, professionalizing courses so that they can earn more and support their kids through college to give them a better quality of life, increase job offers, invest in public education, fight corruption. Seriously, I just don't get how taking money from someone is a better solution
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Trying to fix wealth inequality is lunacy. People work and earn their salary or profit, why should they have to give it to anyone? How's that any different than barging into someone's home and stealing? Isn't the reasonable solution to help the less privileged get back on their feet, professionalizing courses so that they can earn more and support their kids through college to give them a better quality of life, increase job offers, invest in public education, fight corruption. Seriously, I just don't get how taking money from someone is a better solution
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Shannon's
Income inequality is NOT a bad thing! As long as the rich are getting richer AND the poor are getting richer, it means -everyone's- standards of living are increasing! People are too envious of others who have worked harder and accomplished more than them, that they have to rectify that fact by making excuses such as -well they just inherited their money. they got that money by taking advantage of the poor. bla bla bla-
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Income inequality is NOT a bad thing! As long as the rich are getting richer AND the poor are getting richer, it means -everyone's- standards of living are increasing! People are too envious of others who have worked harder and accomplished more than them, that they have to rectify that fact by making excuses such as -well they just inherited their money. they got that money by taking advantage of the poor. bla bla bla-
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Sam
The misunderstanding is that when (most) people talk about income inequality, they are not talking about a doctor/engineer earning 3x more than a cleaner. They are talking about CEOs earning 1000x more than their employees. We all know the job of a CEO is hard, but is it as hard as a doctor? Is a CEO really worth 1000 times more than his secretary?
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The misunderstanding is that when (most) people talk about income inequality, they are not talking about a doctor/engineer earning 3x more than a cleaner. They are talking about CEOs earning 1000x more than their employees. We all know the job of a CEO is hard, but is it as hard as a doctor? Is a CEO really worth 1000 times more than his secretary?
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Benjamin
people with few skills should seek jobs that fit what skills they have. why should people who havent done much make as big a difference to a company as the person who did all of the sacrifice to get the company where it is? yes, inequality might be wrong, but forcing others to pick up the slack you make is also wrong.
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people with few skills should seek jobs that fit what skills they have. why should people who havent done much make as big a difference to a company as the person who did all of the sacrifice to get the company where it is? yes, inequality might be wrong, but forcing others to pick up the slack you make is also wrong.
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Goncalo
It's normal that some people are richer than other people. People shouldn't receive the same, they should receive according to what they generate to the market. Inequality that should be fixed is health inequality and education inequality. Everyone should be able to have the same opportunities to go up in life
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It's normal that some people are richer than other people. People shouldn't receive the same, they should receive according to what they generate to the market. Inequality that should be fixed is health inequality and education inequality. Everyone should be able to have the same opportunities to go up in life
reply
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