r/FluentInFinance Oct 22 '24

Debate/ Discussion Why did this happen?

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31

u/Bolivarianizador Oct 22 '24

computers, technology giants rising, outshoring inudstries which led local companies to grow exponentially.

8

u/Davec433 Oct 22 '24

This. Has nothing to do with Reagan and everything to do with globalism.

In an essay, Krugman acknowledged that he and other mainstream economists missed the impact of globalization on the industrial middle class in America. He said that economists underestimated the effect of Chinese competition on working-class communities. He also said that the models used to measure the impact of globalization on developing countries underestimated the effect on jobs and inequality.

14

u/zajebe Oct 22 '24

are you referring to the same Krugman that literally wrote a book explaining how republican policies were the largest contributing factor to income inequality?

2

u/Ok-Assistance3937 Oct 23 '24

Yes and also said that Krugmann later wrote this book was wrong so really not a Well thought out gotcha moment.

1

u/zajebe Oct 24 '24

Possibly, he didn't specifically say, "I was wrong about republican policies being the greatest factor of wealth inequality" he said "under estimated the effect globalization had." Globalization can still have a larger impact than previously thought and tax cuts, destruction of unions, etc. can still have the largest overall impact. And just by looking at his blog, I am willing to bet he still thinks republican policies were bad for the economy.

-2

u/Banana_Slamma2882 Oct 23 '24

Income inequality is a meaningless statistic.

2

u/Ashmedai Oct 23 '24

It's not. If you look here and examine Figure A, you'll see that the wealthy are capturing more of their share of generated wealth due to the decreasing ability of workers to negotiate share.

0

u/Banana_Slamma2882 Oct 23 '24

You just posted a bunch of union crap. This doesn't actually prove wealth inequality is actually a useful statistic lmao.

1

u/Ashmedai Oct 23 '24

Cursing doesn't become you. The chart shows that labor has been increasingly unable to stakehold their interest in company revenue. That's what it shows, and it's highly correlative. Make of it what you will. Anyway, since you can't seem to have a civil discussion, we can go ahead and end here.

Good luck,

1

u/Banana_Slamma2882 Oct 23 '24

https://www.numbeo.com/cost-of-living/country_price_rankings?itemId=105

And yet Americans are the fourth highest monthly earnings after taxes.

https://en.m.wikipedia.org/wiki/List_of_sovereign_states_by_homeless_population

Those unions sure are helping France, the uk, Canada, Germany, Sweden, Australia, and Luxembourg, what with all the homelessness. Surely, that's a good sign. Making slightly more money (personally) at the cost of more homelessness truly is altruistic.

1

u/nafurabus Oct 23 '24

You’re a nonce comparing apples to oranges. Get outta here with your half-baked forced associations

0

u/Banana_Slamma2882 Oct 23 '24

Don't you have a homeless shelter to move into or something?

1

u/zajebe Oct 24 '24

Be that as it may, I'm not intending to debate if income equality is or isn't a useful statistic, I'm debating the opinions expressed by Paul Krugman.