tag:blogger.com,1999:blog-7905729024656704090.post2989267586403458484..comments2024-03-16T10:51:29.949-04:00Comments on <center>Misunderstood Finance</center>: US Income Inequality And Pareto DistributionsMilton Rechthttp://www.blogger.com/profile/02488660316957122768noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7905729024656704090.post-60475838764442681052013-05-20T11:42:07.922-04:002013-05-20T11:42:07.922-04:00sf_jeff
First, correlation does not prove causali...sf_jeff<br /><br />First, correlation does not prove causality - a key concept you need to know before looking at any form of statistic.<br /><br />Second, you seem to discount the impact of WWII. This was the main kick start for economic growth in the U.S. and continued long after as much of the world was stuck rebuilding while we were not. We were the suppliers of that rebuild and benefitted greatly during the subsequent few decades.<br /><br />There is still zero proof that without WWII, FDR's socialist programs would have gotten the US out of the economic cycle it was in any sooner than any other form of policy.<br /><br />In fact, looking at Japan and how they have been trying to do the same thing for that last 20 years from their lost decade and they are still lost, the reality is that any program, either democratic or republican would have failed to produce much if not for the war.<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7905729024656704090.post-27569534199103259692012-08-28T23:32:38.495-04:002012-08-28T23:32:38.495-04:00"No one has a good answer as to why income le..."No one has a good answer as to why income level distributions have been cyclical over the last 100 years, or whether it will continue its trend towards more income and wealth concentration or reverse as it did in the 1970s."<br /><br />My jaw hit the floor when I read that. It would seem that even some very well read people have no idea that the economy grew more than twice as much under 12 years of FDR as under the last 48 years of Republican presidents combined.<br /><br />It would seem that the idea that you need a strong middle class in which capital owners and labor have relatively balanced power and influence in society in order to simultaneously provide both the capital growth and demand growth that must come hand in hand to have a strong society.sf_jeffhttps://www.blogger.com/profile/04072565215769464363noreply@blogger.com