christopher heiser <christopher AT heiser DOT net>
Date Published: February 26th, 2008
rss feed

for dummies
about me
public key

Is Consumption a Better Measure than Income?

Back in September, Paul Krugman started a blog with a provocative first post where he argued that the New Deal essentially created the middle class with a massive redistribution of wealth. It's an excellent post, and he shows this graphically with this image:

The discussion of the rising gap between rich and poor has been around as long as I've been alive. And there's no doubt that the gap is widening.

However, another excellent article by W. Michael Coc and Richard Alm of the Dallas Federal Reserve argues that while income gaps continue to rise, consumption gaps--from a certain point of view--have grown less quickly. They also point out that the rate at which luxuries saturate each class has greatly accelerated in the past few decades. It sounds a bit like an apologist point of view, but their graphical representation of this is fantastic. Click the thumbnail below to get the full-size picture:

by Christopher Heiser on February 26 23:11
© Copyright 1992-2022, Christopher Heiser. All rights reserved. Powered by Chlogger!