2 ms·
Not necessarily. If the size of the pie is growing then it might be ok for the 'poor'. They get a smaller share of the bigger pie that is still bigger than wha
by srean 7mo ago
Not necessarily.
If the size of the pie is growing then it might be ok for the 'poor'. They get a smaller share of the bigger pie that is still bigger than what they had before.
However if the pie hasn't grown as fast as the inequality has grown, then their share has been on a continuous decline.
The US is not a high pie growth economy.
Rich getting richer can very much better a serious problem when the pie does not grow to keep up.
- Ajedi32 7mo agoThat's just another way of describing a scenerio where the "poor are getting poorer". Focusing on the share of the pie ("inequality") is a red herring, if the poor are getting less wealthy in absolute terms that's bad regardless of whether inequality is increasing or decreasing.
- srean 7mo agoDepends on how poverty is being measured. Many measure it in terms of money and not the sum total of goods and services that they can claim. Infact in lay person literature it is usually measured in terms money (+ liquid assets), at best inflation adjusted if they are comparing different times. This why one needs to think in terms of the 'pie'. > if the poor are getting less wealthy in absolute terms that's bad regardless of whether inequality is increasing or decreasing. In complete agreement with that. I did not realise that my comment conveyed the opposite.