From: B
Sent: Thursday, June 02, 2016 10:53 AM
To: Walter Block
Dear Walter – I hope you don’t mind (another) reading question:
Re. the income disparity among percentiles in the population (not between sexes)–e.g., “the top 1% vs. bottom 99%” or “the top 10% vs. the bottom 90%”–is it true that the disparity has grown during recent decades and, if so, why? I think I’ve heard Ron Paul say, off hand, that there is an increase in the disparity and that it is the result of Fed Policy. Any suggestions for things to read on this? I’d prefer just a couple of good references to a whole slew, as I have limited time to devote to this issue. Many thanks! B
Dear B:
I’m not sure why the top 10%, 1%, is rising, relatively. Maybe, crony capitalism? Computers? As to why the bottom 10% is falling, reltively, my guess would be the minimum wage law, unions, welfare, the usual suspects.
However, let me say this, in an attempt to cover up my ignorance aboutt the statistical facts of inequality. As a libertarian, I have absolutely no views on the proper variance of incomes or wealth, apart from the ideal that whatever it is, is should emanate from an economic system of full freedom, that is, laissez faire capitalism. Consider the standard deviation in other realms beside income: chess, musical ability, basketball, medicine, philoosphy, track, STEM, swimming, running, IQ, etc. It is GIGANTIC in all these realms. I suspect this stems from sociobiology; we as a human race are better able to cope if some of us are excellent in some fields, and lousy in others, rather than if we were all pretty equal in all of them. Specialization and the division of labor bring about prosperity, and this is enhanced by inequality, not equality. Males have a far greater variance in abilities than females (more males than females in jail and winning Nobel Prizes in STEM; more males than females in mental instutions and grandmasters in chess, etc.)
Best regards,
Walter
1:25 am on February 22, 2019
