- Consumption inequality is less than income inequality due to our progressive taxes and government programs (Medicare, Social Security), where higher income citizens pay more taxes and receive fewer benefits as a percentage of income.
- Inequality can be the result of incentive pay. If we reduce inequality, we weaken the link between pay and performance, which reduces the size of the proverbial pie.
Monday, August 1, 2022
How economists think about inequality
In my managerial econ class, I often get asked about inequality (links). My points are two:
Neither of these arguments will persuade students, but it does get them to engage, if only to show the flaws in these arguments, and I view that as a win.
Subscribe to:
Post Comments (Atom)
Pozdrav svima. Moje ime je Maria Magdalena, samohrana sam majka troje djece, želim podijeliti opipljivo svjedočanstvo o tome kako sam dobila zajam od 10.000 eura uz 3% od bogobojaznog čovjeka, gospodina Mikea Andersona. Ako ste zainteresirani za dobivanje kredita, obratite mu se, uvjeravam vas da je sigurno, hvala. E-mail adresa: (barrmikeanderson48@yahoo.com)
ReplyDelete