4 ms·
Because economies growing or shrinking generally affects people proportional to their wealth (including human capital). To me, Gini curves seem far more effecti
by aoeusnth1 8y ago
Because economies growing or shrinking generally affects people proportional to their wealth (including human capital). To me, Gini curves seem far more effective for understanding the dynamics of inequality than looking at absolute differences, which largely change due to economic growth.
- xg15 8y agoYes, that's true when talking about causes of a wealth gap, but this thread was about effects. A growing absolute wealth gap can still lead to reduced quality of life for lower-wealth groups - e.g. because prices rise faster than their incomes and so they effectively lose access to certain goods. It will also increase inequality and makes other economic measures (that rely on the mean) less reliable. Just because an effect is always present, doesn't mean you can ignore it, especially if doing so would flip the conclusion. Posting the elephant graph as an argument that all is going well would do exactly that.