Comments on: Stop adding up the wealth of the poor http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Sensibleslant http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/comment-page-1/#comment-49913 Thu, 08 May 2014 19:05:38 +0000 https://blogs.reuters.com/felix-salmon/?p=23325#comment-49913 The rich buy services true, such as labor, so they can make money. This does not equate to a middle class person buying consumer goods because he is not exploiting anyone. The rich and wealthy own and run corporations by utilizing services of their employees (their labor) to make record profits. I don’t see how you can’t equate that only 67 or 85 people own the majority of the wealth in the world and not equate it to economic imbalance. The fact is the wealthy and transnational corporations own the marketplace and will be able to dictate wages and prices as long as people have to work for them.

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By: SouthOhioGOP http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/comment-page-1/#comment-49690 Sun, 06 Apr 2014 20:29:04 +0000 https://blogs.reuters.com/felix-salmon/?p=23325#comment-49690 So what if there is huge wealth inequality around the globe? Governments will never be able to correct it on a society wide basis, let alone a global one.

No, the best way to extract wealth from the rich is to provide them with a service or product which they cannot live without. They will gladly, and I mean gladly with a smile on their face, hand you more money than you will ever believe.

The only difference between the rich and the middle class is that the middle class buy products, the rich buy services.

The internet has made it so that only the least imaginative cannot engage in some form of entrepreneurial enterprise.

Governments will never be able to extract and redistribute to any one person to change any individual’s lives. But one individual can indeed tap into the trillions that flow around the world if they provide a quality, superior level of service at a superior price.

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By: ekasilicon http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/comment-page-1/#comment-49688 Sun, 06 Apr 2014 18:26:04 +0000 https://blogs.reuters.com/felix-salmon/?p=23325#comment-49688 This type of analysis is inherently misleading. It suggests (to the man in the street) vast and growing inequality in consumption. In reality it only reflects growing inequality in the control of assets. As the world economy becomes more integrated financially, and legally and technologically complex, many operations (even farming and the sale of hamburgers) tend toward oligopoly. It is far better for the people who understand these enterprises to exercise control through ownership than as pals of the current dictator.

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By: TFF http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/comment-page-1/#comment-49687 Sun, 06 Apr 2014 16:51:10 +0000 https://blogs.reuters.com/felix-salmon/?p=23325#comment-49687 Thanks, KenG. Auros, I’ve seen those studies, but they seem to be focused on Americans, not global income/wealth. Is why I was curious about the latter claim.

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By: ShillyD http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/comment-page-1/#comment-49685 Sun, 06 Apr 2014 13:34:48 +0000 https://blogs.reuters.com/felix-salmon/?p=23325#comment-49685 Since I only take my cues about major problems in the world from WELL SOURCED memes, I’m going to assume that I can now dismiss my concerns about income inequality. Now that this is done, I’m hoping Mr. Salmon will move on to other important topics, like IS winter, in fact, coming, and CAN ONE simply walk into Mordor?

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By: walstir http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/comment-page-1/#comment-49683 Sun, 06 Apr 2014 06:33:31 +0000 https://blogs.reuters.com/felix-salmon/?p=23325#comment-49683 “If you’re looking for people with significant negative net worth, in a way it’s surprising that only 7.5% of the world’s bottom 10% are in the US.”

Not just individuals – countries as well. If debt is considered as negative wealth; the U.S. with its vast cumulative deficits would be among the poorest countries on earth.

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By: AttyFAM http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/comment-page-1/#comment-49682 Sun, 06 Apr 2014 01:33:40 +0000 https://blogs.reuters.com/felix-salmon/?p=23325#comment-49682 The sad truth is that the bottom 40% of America owns only 0.2% of the wealth. The next 40% own only 14.9% of the wealth. The top 20% owns all the rest, 84.9% of the wealth. America is quickly turning into an oligarchy. Soon, the bottom 80% of the country will own very little indeed.

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By: Auros http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/comment-page-1/#comment-49680 Sat, 05 Apr 2014 22:47:23 +0000 https://blogs.reuters.com/felix-salmon/?p=23325#comment-49680 TFF: Yes, wealth inequality has definitely increased / wealth become more concentrated. The Piketty-Saez research shows it clearly (see, for instance:
http://www.slate.com/blogs/moneybox/2014  /04/02/wealth_inequality_is_it_worse_th an_we_thought.html ), and there’s plenty of other evidence. On the income side, which is easier to measure, the widely-quoted statistic is that, since the beginning of the recovery in ’09, approximately ALL gains of income have flowed to the top 1% — everyone else is flat or down. And of course housing (the main source of wealth of the middle class) has not had the same kind of bounce-back and run-up as financial assets (which are largely held by the very-rich).

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By: crmorris http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/comment-page-1/#comment-49670 Sat, 05 Apr 2014 11:46:52 +0000 https://blogs.reuters.com/felix-salmon/?p=23325#comment-49670 The Piketty book suggests that wealth distribution in the post-WWII era was uniquely “fair” — developed country income quintiles were more closely clustered than ever before. Since the 1980s, the English-speaking countries have drifted back near nineteenth century distributional patterns. European continent still mostly holding out. Note that accretions of wealth usually comes with accretions in political power to lock in the distribution.

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By: KenG_CA http://blogs.reuters.com/felix-salmon/2014/04/04/stop-adding-up-the-wealth-of-the-poor/comment-page-1/#comment-49659 Sat, 05 Apr 2014 00:05:53 +0000 https://blogs.reuters.com/felix-salmon/?p=23325#comment-49659 TFF, I think the 0.1%, and especially the top 10% of that group, has increased their share of the pie.

I think it has happened on a global scale, that is why the dollar can’t be replaced as the reserve currency – every major economy has to borrow heavily to keep their economies from crumbling, and that is mostly because their middle and lower income groups are not earning as much.

You can say that there are a lot of people in China earning more than they used to, but the workers they have displaced were earning more, and the savings are mostly going to the top of the pyramid. As a result, China prints money, the U.S. prints money, and the EU prints money. They’re printing money because less margin dollars are being recycled back into the economy, and are getting accumulated which does no good.

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