Monday, November 27, 2017

Why the rich get richer


This article says this incredible rise is not due to trade, information technology, unions, immigration or rising ranks/earnings of executives or company managers.
So What’s Going On?

Almost all of the growth in top American earners has come from just three economic sectors: professional services, finance and insurance, and health care, groups that tend to benefit from regulatory barriers that shelter them from competition.

[...]

Problems [...] include subsidies for the financial sector’s risk-taking; overprotection of software and pharmaceutical patents; the escalation of land-use controls that drive up rents in desirable metropolitan areas; favoritism toward market incumbents via state occupational licensing regulations (for example, associations representing lawyers, doctors and dentists that block efforts allowing paraprofessionals to provide routine services at a lower price without their supervision).

[...]

The United States also stands out in terms of how much money its elite professionals earn relative to the median worker.

[...]

This ratio, the elite professions premium, is very highly correlated with income inequality across countries. 

       New York Times
But you know - say it with me, Trumpettes: The New York Times is FAKE NEWS.  (And the rich people deserve it.)

 ...but hey, do what you want...you will anyway.

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