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Monday, September 17, 2012

Incredible Income Disparity in the US

This is not something new. Democrats use this as their war cry, even as their own politicians are found "playing" the stock market with "insider" information (of course, it does not apply to elected representatives of US congress!)and keep getting wealthier. Republicans, on the other hand, are known for their "trickle down" or in more sophisticated jargon, "supply side theory." They are alwys for "tax cuts." I am not sure who is right. Both sides can use the same data and spin it to make their arguments good. Washington is mired with people full of confirmation bias. Well, I guess, we all display this fallacy, to be honest. Politics apart, I just wanted to post this incredibly telling data on US income inequality and how various "income groups" have fared over 38 years. No wonder, the system is extremely lopsided! Despite this mindnumbing advantage, the affluent class continues to be aided by the monetary policies of Ben Bernanke. Fed chief may not be doing it intentionally and one might give him benefit of the doubt (he seems like a good man); however, his policies are known to pump money into Wall Street and invariably finds its way into the homes of those who are rich and well-connected. This trickle down thing seems to have a directional bias or knows when to stop trickling further. Here is the data: