Friday, October 28, 2011

Getting Richer

There are several very deceptive things wrong with the article about the rich getting richer.

There are reasons why this has to happen:

The top tier has money to invest and does so; the bottom tier does not, so just can not grow as quickly. In addition, inflation makes the absolute difference even larger. The same inflation rate on a larger amount of money has a larger absolute impact.

There is no limit to what the upper tier earns; all the other tiers are limited in what they earn by the tier structure.

If someone in a lower tier earns more than the tier limit, they move up. Except at the top, the highest earners in every tier are always leaving.

The study was over 30 years. Are we to believe that we are discussing the same people? The people in the lowest tier 30 years ago have moved on – obtained more skills, gotten better jobs and higher salaries. If the same people are still in the lowest tier after 30 years, they have a problem, not society.

Meanwhile, the lowest tier has constantly been replenished by new kids leaving the nest, immigrants, etc. It is no surprise these are at the bottom; starting at the top is not the usual way to success. Whether they stay there is the issue.

The results of the study are reported in manner that is deceptive and intellectually dishonest. If this is what the Occupy Wall Street movement is about, it shows their lack of perception.