Citing Piketty and Saez, for example, Stiglitz concludes (2012: 7) that, “the rich are getting richer . . . the poor are becoming poorer and more numerous, and . . . the incomes of the middle class are stagnating or falling.” On the contrary, this paper shows that (1) the rich were becoming much poorer in 2008-2010, that (2) the poor became less numerous whenever the top 1 percent’s share increased, and that (3) real after-tax median household incomes rose by 48.8 percent from 1980 to 2009 (CBO). Such a wide gap between perception and reality, even among prominent economists, requires more careful reexamination of many alleged facts.Which would explain how ordinary people have so much stuff these days--flat screen TVs, computers and handheld devices, automobiles that go 100,000 miles without needing their spark plugs changed, larger houses with more bathrooms....
Friday, October 19, 2012
Turn out the lights, the Occupy party is over
According to Alan Reynolds of Cato;