Economic ignorance

Sigh:

It’s the second point which is more interesting. If we use pre-tax income as our measure of inequality then changing the taxation system doesn’t change inequality, does it? We could double the taxation of the rich and the Gini, as we’re measuring it, would still be 0.50. We could halve the taxation of the rich and our Gini would still be 0.50.

That is, the action you’re proposing would have sod-all effect on the problem you identify and wish to correct.

Now, it’s true that you made good money in business. Well done you. You didn’t have that success by diverting scarce resources to pissing up a rope. So, why are you proposing for the body politic what you’d laugh out of your own boardroom?

12 comments on “Economic ignorance

  1. ‘the problem you identify’

    ‘perpetuate income inequality.’

    What about car inequality? Jewelry inequality? Bread inequality? Gin inequality?

    Take any noun and paste inequality on the end of it. Makes no sense, does it? ‘Income’ is no different: income inequality is nonsense.

    Because income equality is NOT GOOD. It is TERRIBLE!

    Yet politicians say we must strive for it.

    Note that they don’t care about equality, either. This is just totalist language to get you to accept socialism.

  2. ‘All men are born with different capabilities; if they are free, they are not equal; if they are equal, they are not free.’ – Solzhenitsyn

  3. I would think the Progressive mania for having 50% of the child population going to “university”, and expanding the number of jobs which pointless require a “degree” is a very large driver of “perpetual income inequality”.

  4. Similarly if you leave out all doles your Gini coefficient will not budge if you decide to give the underclass ten thousand a year each.

    Anyway, call me a reactionary swine but I suspect that the inequalities that are hardest on people are inequality in health, energy, beauty, quick wit, sanity, and the simple capacity for happiness. If you happen to be born feeble and feeble-minded, depressive, ugly, and intrinsically envious and unsatisfied, your only hope is to become Leader of the Labour Party. Even if you grew up in a manor house and had some of your education in a private school.

  5. Nah, if you whack income tax up to 99%, people will stop working so hard, so ipso facto the gini inequality will fall.

    It works, but not for good reasons.

  6. @dearieme “If you happen to be born feeble and feeble-minded, depressive, ugly, and intrinsically envious and unsatisfied, your only hope is to become Leader of the Labour Party.”

    Or director of Tax Research UK

  7. So what is the acceptable level of income inequality?
    New nurses are payed less than nurses that having been working for 10 years, certain nursing specialisations earn a premium, that’s income inequality, should it be banned?

  8. “Anyway, call me a reactionary swine but I suspect that the inequalities that are hardest on people are inequality in health, energy, beauty, quick wit, sanity, and the simple capacity for happiness.”

    Blog’s like this are full of them, pigs that is. +1 DM

  9. I didn’t see it but apparently on the Daily Politics show Labour promised:

    1/ that there will not be a single food bank operating in the UK within 5 years of labour winning the election

    2/ That there will not be a single person in full time work claiming a benefit within 5 years. That apparently is their definition of “in work poverty”

    So it looks like Labour’s going to solve government incompetence and arrange for a single mum with 3 kids to get paid a lot more than a single woman with no kids and the same experience.

    As others have said, this election is fast becoming a race to the bottom.

  10. “I would think the Progressive mania for having 50% of the child population going to “university”, and expanding the number of jobs which pointless require a “degree” is a very large driver of “perpetual income inequality”.”

    I am utterly convinced that this is one of the greatest causes of the generalised dissatisfaction that exists within society today. We have effectively set up an apartheid system, whereby every 18 yo faces a decision to either go to Uni or not, if they go they face a lifetime of debt, and no guarantee of the ‘good jobs’ that getting a degree used to mean, or not going to Uni and being confined to the lower half of the job market, fighting for employment with the millions of cheap labour immigrants we have allowed into the country. And never being able to move up the employment ladder into one of the ‘better jobs’ because the requirement for a degree moves ever further down the ladder.

    Hardly anyone wins in this scenario. The people at the bottom are stuck there, with no way past the degree iron ceiling. The people who have got a degree are facing intense competition from every other bugger who has got one, and the calibre of jobs that a degree gets you falls ever lower. Only the cleverest 10-15% who manage to go to the top grade unis and get hard degrees can be more assured of well paid employment, just as it used to be 30-40 years ago. Everyone else is facing a sort of nonstop tread mill to stand still, and have no way of escape.

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