I want to tie together two recent posts on the history of prosperity and economic inequality. The history of prosperity illustrates another reason why a focus on inequality is misguided. Historical norm was poverty For most of human history, almost everyone was poor by today’s standards. The graph below shows the percentage of world population living … Continue reading Another reason why focusing on inequality is flawed
Some people believe that economic inequality is literally the biggest problem we face. I will try to explain why such concerns are overblown. If you missed it, last week’s post discussed how much inequality we have in the US. Warped thinking Fixating on income inequality can warp one’s thinking. Strong words, but true. Income inequality is … Continue reading Why inequality is less of a problem than you think
There are some people who believe that economic inequality is literally the biggest problem we face. I generally disagree. This topic is too large for one post. In this one, I’ll cover how much inequality we have in the US. In the next one, I’ll explain why inequality is less of a problem than commonly … Continue reading How much inequality does the US have?
You may soon read or hear media reports about a “CEO pay ratio.” Let’s look at the facts and flaws of this ratio. What is it? Each publicly traded US company is required to publicly disclose the CEO pay ratio. This requirement was included in the massive 2010 Dodd-Frank financial legislation, although it was delayed … Continue reading Facts and flaws of the CEO pay ratio
One reason people don’t like capitalism is because they think it is unfair. One reason people think capitalism is unfair is because they believe that crony capitalism is the same as free-market capitalism. It is not. In fact, crony capitalism is closer to the opposite of free-market capitalism. What is crony capitalism? Crony capitalism is … Continue reading Crony Capitalism ≠ Capitalism
You may have seen headlines saying that CEO’s make 300 times more money than the average worker. These can be deceptive. The data may not be comparable, or cherry-picked for “wow” factor based on only the largest companies. I realize this post may be unpopular, even though it is not a full defense of CEO … Continue reading Are CEO’s overpaid?