The 90 percent are better off.

[giblets]

http://www.themoneyillusion.com/?p=21058#comments

Even Scott Sumner is saying that the key problem is not enough income is going to workers.

JM

What he posted has basically nothing to do with income inequality though.

[Jon Miller]

Not enough income going to workers is obviously a cause of income inequality.

JM

[Jon Miller]

Just because it is not 1-1 doesn't mean that it is correlated. I wasn't claiming it was 1-1.

JM

[giblets]

Not enough income going to workers is obviously a cause of income inequality.

JM

I wouldn't say that's obvious, and he's talking about nominal income, not real income. Whether people are making more, in real terms, than they were forty years ago really has nothing to do with how high the unemployment rate is now. What's he's talking about is high how their nominal income is compared to the recent past.

[Sava]

i love the way jon miller's mind works
i just want to crawl up inside of his head and cuddle with his brain

[Jon Miller]

I wouldn't say that's obvious, and he's talking about nominal income, not real income. Whether people are making more, in real terms, than they were forty years ago really has nothing to do with how high the unemployment rate is now. What's he's talking about is high how their nominal income is compared to the recent past.

Now think about how likely the situation would be that there was an increase in real income with a decrease in nominal income.

JM
(not for individuals, but for all workers in a nation)

[Jon Miller]

I wouldn't say that's obvious, and he's talking about nominal income, not real income. Whether people are making more, in real terms, than they were forty years ago really has nothing to do with how high the unemployment rate is now. What's he's talking about is high how their nominal income is compared to the recent past.

Now think about how likely the situation would be that there was an increase in real income with a decrease in nominal income.

JM
(not for individuals, but for all workers in a nation)

[giblets]

Now think about how likely the situation would be that there was an increase in real income with a decrease in nominal income.

JM
(not for individuals, but for all workers in a nation)

It wouldn't happen, since we only see nominal income go down during recessions. If you're going to build an argument on this please proceed.

[KrazyHorse]

Not enough income going to workers is obviously a cause of income inequality.

JM

Is this some kind of joke?

[Jon Miller]

It wouldn't happen, since we only see nominal income go down during recessions. If you're going to build an argument on this please proceed.

That was my point.

JM

[Jon Miller]

"enough" income going to workers is obviously a necessary (but not a sufficient) condition for less income inequality

JM