Comments on: America: As Egalitarian as Germany, Sort of http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/ The Sweet Release of Reason Sun, 07 Sep 2008 20:12:13 +0000 http://wordpress.org/?v=2.6.1 By: King Kull http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/#comment-351400 King Kull Thu, 18 Oct 2007 17:10:27 +0000 http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/#comment-351400 There's much attention to rising income inequality these days. Has anyone measured how significant the effect of lowering tax rates on the rich has encouraged them to claim their wealth as income, rather than 'hide' it in any number of ways? So while income appears to be rising disproportionately for the super rich, it may just be more visible. There’s much attention to rising income inequality these days. Has anyone measured how significant the effect of lowering tax rates on the rich has encouraged them to claim their wealth as income, rather than ‘hide’ it in any number of ways? So while income appears to be rising disproportionately for the super rich, it may just be more visible.

]]> By: Ken Houghton http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/#comment-351360 Ken Houghton Thu, 18 Oct 2007 16:10:42 +0000 http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/#comment-351360 Stronger unions also have a stronger political capability in protecting their membership, which might have the effect of a marginal shift in the post-tax imbalance. Somehow, I'm not comforted by the idea that it's only tax maneuvers that make the US more unequal. That would be true IF the budgets were relatively balanced between the countries. My "Willie Sutton" instincts (put the taxes where there's money to be found) don't beat the ability to lobby when it will come to politicians allocating who will pay for those increasing ex-SSTF deficits. What we've seen from weaker unions isn't just the shift from DB to DC pensions--it's also a decline in the ability to moderate the political power of the superrich. Unions aren't a panacea by any stretch, but the strange argument that pre-tax differences are no worse than elsewhere argues for the need for stronger political influence of the lower-compensated, and unions are the closest proxy to that you're going to find. Stronger unions also have a stronger political capability in protecting their membership, which might have the effect of a marginal shift in the post-tax imbalance.

Somehow, I’m not comforted by the idea that it’s only tax maneuvers that make the US more unequal. That would be true IF the budgets were relatively balanced between the countries.

My “Willie Sutton” instincts (put the taxes where there’s money to be found) don’t beat the ability to lobby when it will come to politicians allocating who will pay for those increasing ex-SSTF deficits. What we’ve seen from weaker unions isn’t just the shift from DB to DC pensions–it’s also a decline in the ability to moderate the political power of the superrich.

Unions aren’t a panacea by any stretch, but the strange argument that pre-tax differences are no worse than elsewhere argues for the need for stronger political influence of the lower-compensated, and unions are the closest proxy to that you’re going to find.

]]> By: The Bellows » That’s One Way to Look at It http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/#comment-351276 The Bellows » That’s One Way to Look at It Thu, 18 Oct 2007 14:13:00 +0000 http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/#comment-351276 [...] discusses a new study showing that market income inequality in America is reasonably close to that in [...] [...] discusses a new study showing that market income inequality in America is reasonably close to that in [...]

]]> By: Svenske tilstande? « The Hairpin Bend http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/#comment-342225 Svenske tilstande? « The Hairpin Bend Tue, 09 Oct 2007 12:12:10 +0000 http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/#comment-342225 [...] Hattip til Will Wilkinson, der har valgt en anden (og lige så interessant) vinkel. [...] [...] Hattip til Will Wilkinson, der har valgt en anden (og lige så interessant) vinkel. [...]

]]> By: John S Bolton http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/#comment-337092 John S Bolton Thu, 04 Oct 2007 00:24:59 +0000 http://www.willwilkinson.net/flybottle/2007/10/03/america-as-egalitarian-as-germany-sort-of/#comment-337092 Inequality of income is not in itself bad, but stagnation of median income means that the impulse to increase productivity is weakened, and the more so, the longer this situation lasts. Since the redistribution of pretax income towards the superrich, is the cause of perhaps more than all of this shift, we have reason to fear that it may go further. Inequality of income is not in itself bad, but stagnation of median income means that the impulse to increase productivity is weakened, and the more so, the longer this situation lasts. Since the redistribution of pretax income towards the superrich, is the cause of perhaps more than all of this shift, we have reason to fear that it may go further.

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