4 ms·
Seems like a wealth transfer from "developed country" workers to "less-developed country" workers and capital owners. The exact dynamics are of course hidden fr
by msellout 11y ago
Seems like a wealth transfer from "developed country" workers to "less-developed country" workers and capital owners. The exact dynamics are of course hidden from that chart. The labels on the axes say that the peaks are gaining relative to the valleys in that chart.
- yummyfajitas 11y agoA wealth transfer would cause at least one group to take losses, no? This graph shows growth for everyone.
- msellout 11y agoNo. There could be two phenomena occurring simultaneously: growth for everyone and layered on top of that a wealth transfer. The key term you're ignoring in my comment was relative: "peaks are gaining relative to the valleys". I know you're into finance. Are you familiar with the concept of a long-short hedge fund? If so, you should be comfortable with the idea of focusing on relative movement of two assets within an asset class, hedging against the absolute movement of the asset class as a whole.
- yummyfajitas 11y agoIf you want to declare a delta between some hypothetical distribution and the actual distribution "wealth transfer", have at it. That is certainly irrefutable, albeit mathematically vacuous.
- msellout 11y agoNot sure what you're getting at with "delta between some hypothetical... and the actual" but yes, I was describing something irrefutable. You'd asked what the chart meant. I looked at the axes labels and described the shape of the curve.