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The biggest reason we have mass inequality in America is low interst rates (leading to an asset bubble), the Covid wealth transfer to the rich (including free g

The biggest reason we have mass inequality in America is low interst rates (leading to an asset bubble), the Covid wealth transfer to the rich (including free government subsidies and handouts), and mass immigration of low skilled people which increases competition and diminishes the earnings at the bottom end (although it benefits the rich who hire maids and employers like restaurants). For other developed countries there multi-generational rich like the Wallenbergs and Ikea of Sweden. My guess is they are much wealthier as percent of GDP than America than American oligarchs. However the total 1% in the US is slightly more: https://www.economist.com/business/2016/03/10/a-nordic-pyramid https://www.economist.com/business/2016/03/10/a-nordic-pyram... “Credit Suisse, in its annual report on global wealth in October, pointed to findings that the richest 1% of Swedish households control 24% of the population’s total wealth, making it only a bit less unequal than India (25.7%). In contrast, Spain’s 1% control 16.5% of the wealth, and Japan’s only 4.3%.”

lotsofpulp 5y ago
What about all the cheaper labor in other countries with more lax environmental and labor laws, not to mention being cheaper simply due to being further back on the development timeline? And automation obviating roles quicker than people can or are willing to be retrained to more in demand roles?
pessimizer 5y ago
> The biggest reason we have mass inequality in America is low interst rates (leading to an asset bubble), the Covid wealth transfer to the rich (including free government subsidies and handouts), and mass immigration of low skilled people which increases competition and diminishes the earnings at the bottom end (although it benefits the rich who hire maids and employers like restaurants). Mass inequality predates all of these things by a significant amount of time. Covid is like 2 years old, and low interest rates like 15. Mass immigration of low-skilled people is something that's happened throughout the entire lifespan of the US, although I don't know that you're specifically talking about the US. There's no time of a lack of low-skilled immigration to compare to. If you're American, and not a native or the descendant of a slave, you are 98% likely the result of low-skilled immigration.
- throw0101a 5y ago
  > Covid is like 2 years old, and low interest rates like 15. US interest rates were fairly low in the 1950s and even 1960s, and inequality wasn't as high then: * https://fred.stlouisfed.org/series/INTDSRUSM193N https://fred.stlouisfed.org/series/INTDSRUSM193N Interest rates have been <1% in Japan since 1995, how's inequality there? * https://fred.stlouisfed.org/series/INTDSRJPM193N https://fred.stlouisfed.org/series/INTDSRJPM193N
- fighterpilot 5y ago
  Wealth inequality increased significantly in the US in the late 20th century. Cheap labor is definitely a candidate explanation. But I don't mean immigration, although undocumented cheap labor is part of it, I mean globalization of trade and the rise of China. Now, everyday Joe has to compete with two billion foreigners who will work harder than he will and for less. So of course car plants are going to shut down and the monetary value of his/her unskilled labor are going to plummet. That's just supply and demand and unsurprising. On net, I think it's a humanitarian miracle that these counties are rising up. But it's undoutedly a big part of the inequality picture in the US.

lotsofpulp 5y ago

What about all the cheaper labor in other countries with more lax environmental and labor laws, not to mention being cheaper simply due to being further back on the development timeline? And automation obviating roles quicker than people can or are willing to be retrained to more in demand roles?

pessimizer 5y ago

> The biggest reason we have mass inequality in America is low interst rates (leading to an asset bubble), the Covid wealth transfer to the rich (including free government subsidies and handouts), and mass immigration of low skilled people which increases competition and diminishes the earnings at the bottom end (although it benefits the rich who hire maids and employers like restaurants). Mass inequality predates all of these things by a significant amount of time. Covid is like 2 years old, and low interest rates like 15. Mass immigration of low-skilled people is something that's happened throughout the entire lifespan of the US, although I don't know that you're specifically talking about the US. There's no time of a lack of low-skilled immigration to compare to. If you're American, and not a native or the descendant of a slave, you are 98% likely the result of low-skilled immigration.

throw0101a 5y ago
> Covid is like 2 years old, and low interest rates like 15. US interest rates were fairly low in the 1950s and even 1960s, and inequality wasn't as high then: * https://fred.stlouisfed.org/series/INTDSRUSM193N https://fred.stlouisfed.org/series/INTDSRUSM193N Interest rates have been <1% in Japan since 1995, how's inequality there? * https://fred.stlouisfed.org/series/INTDSRJPM193N https://fred.stlouisfed.org/series/INTDSRJPM193N
fighterpilot 5y ago
Wealth inequality increased significantly in the US in the late 20th century. Cheap labor is definitely a candidate explanation. But I don't mean immigration, although undocumented cheap labor is part of it, I mean globalization of trade and the rise of China. Now, everyday Joe has to compete with two billion foreigners who will work harder than he will and for less. So of course car plants are going to shut down and the monetary value of his/her unskilled labor are going to plummet. That's just supply and demand and unsurprising. On net, I think it's a humanitarian miracle that these counties are rising up. But it's undoutedly a big part of the inequality picture in the US.