On Sun, 8 Sep 2013 11:20:43 -0700 (PDT), "
wrote:

On Sunday, September 8, 2013 1:47:58 PM UTC-4, Ed Huntress wrote:



The IMF and others have shown connections between income inequality

and declines in growth rates, and they present some evidence that it's

a direct causative relationship.



Ed Huntress

I believe the Gini numbers are only a measure, not a cause. You can " improve " the Gini number by confiscating all the property of everyone in the top 10 % of income. But that will play hell with the economy.

In countries where the Gini number is low, it is probably the number of good middle class jobs that causes it to be low. In other words a good economy causes the Gini number to be low. Reducing the income of those with high income is not likely to help the economy, but would " improve " the Gini number.

If there is a direct causative relationship, then you ought to be able to produce the reasons that the Gini numbers causes economies to flourish or decline. But those words " some evidence " indicate there is no obvious cause.

So Ed, what sort of recreational metalworking have you been doing? I am off to the garage to see how hard it would be to add a circuit for turning on lights when the trigger is pressed on my mig welder.

Dan


I don't where you're going with this. Of course the Gini number is
just an indicator. Indicators don't cause things in themselves.

We've discussed that extensively in this thread, Dan. Maybe you'll
want to look at it.

Recreational anything is off the table at the moment. I'm scrambling
to get my October issue out before a business trip to Europe.

--
Ed Huntress