5 ms·
Growing the middle class raises the Lorenz curve in the center. That, in turn, lowers the GINI coefficient.
by defertoreptar 8y ago
Growing the middle class raises the Lorenz curve in the center. That, in turn, lowers the GINI coefficient.
- jlarocco 8y agoIt can lower the GINI, but it hasn't been. GINI's been increasing for decades, and was still increasing as of 2016: https://fred.stlouisfed.org/series/SIPOVGINIUSA https://fred.stlouisfed.org/series/SIPOVGINIUSA
- defertoreptar 8y agoThat is interesting that the GINI didn't inflex with the middle class in 2016. It would be good to see more data. Apparently the World Bank doesn't compute it too often.
- TomMckenny 8y agoIf wages increases are less than GDP growth rate, the GNI must rise. The situation for the last 40 or so years.
- defertoreptar 8y agoThe middle class income earners tend to have retirement accounts, don't they?
- TomMckenny 8y agoThat would be one of the places wages are allocated after they are received. It is not relevant to take home pay. And of course retirement saving are stunningly in adequate for the vast majority. Likely because anyone who wants to save has to compete with people who don't and will work for a lower salary. It should also be noted that in the past, employees frequently received pensions which rival their take home in total value. And even though pensions have disappeared, wages remain flat.