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Does Income Inequality Impair the American Dream of upward mobility? (IQ2…
Does Income Inequality Impair the American Dream of upward mobility? (IQ2 2014)
40% of America's wealth in the hands of the 1%, impairs the American dream of upward mobility?
For
Income inequality has increased over the generations, has impaired growth of the economy. Inter-generational mobility- income function of your wealth, little chance of making success, less mobility than most other industrialised nations
Family background twice as likely to determine future earnings than in Canada, US more unequal
Lower income people cant make investment in their children, self-reinforcing cycle
Share of income fell for the poorest and middle class. Distance from the bottom to the top is staggering. CEO's earn 300-500 times the average workers wage
Capitalism needs inequality to grow, however too much inequality kills capitalism by drowning the middle class
Lower taxes are a myth, responding to incentives. Biggest incentives is the market size, more money people have the bigger the incentives.
Research not conclusive, have to wait to see what happens to kids when they grow up? opportunities are simply not there
Always where you find inequality you find impaired mobility
Fewer resources going to the bottom when rich get a larger share of the pie, simply don't have the same opportunities
Consequence of differential access to power
Differences in resources available are found very early on, lower income, instability, unemployment
Having a society that is structured as an arms race is not constructed to be a good society
Against
Agree lot of income inequality in the US, if it were impairing the American dream, consensus mobility has remained remarkably stable over the century
no difference in mobility between Canada, US and Sweden
Research finds shows biggest increases in the highest income, greatest increases in income for poor and middle
Seen a lot of growing inequality, however mobility hasn't decreased
Have found a way of growing the living standards of the poor
Employment grew instead of wages
No economy has done more to help the poor and middle class than the US
Inequality accelerate growth in high wage economies
Inequality didn't show up in 15 years
We have gotten more prosperous over time, higher income going from government to the poorest and more dependent, doing a lot to help increase our mobility. Increase in the economy drives this
A lot of people can lift themselves out of poverty
Raised the bar for success, the highest achievers have worked harder and harder and have generated more innovation and higher growth , drives the most talented people to work harder and harder and take more risk