Comments on: Measuring inequality (with contest results) http://cafehayek.com/2008/08/measuring-inequ.html where orders emerge Mon, 16 Jan 2012 02:06:33 +0000 hourly 1 http://wordpress.org/?v= By: Martin Brock http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29469 Martin Brock Sun, 31 Aug 2008 05:07:42 +0000 http://localhost/wordpress/?p=3089#comment-29469 <p>Decreasing household size accounts for some of the decline in the rate of increase in household income for the bottom 90%. I've made this point myself for years. The starkest change in the chart is the ten-fold increase in the rate of increase for the income of the top one percent, and Russ hardly addresses this change at all. Why is that? Discussing the income of very wealthy people is simply taboo?<br /> </p> Decreasing household size accounts for some of the decline in the rate of increase in household income for the bottom 90%. I've made this point myself for years. The starkest change in the chart is the ten-fold increase in the rate of increase for the income of the top one percent, and Russ hardly addresses this change at all. Why is that? Discussing the income of very wealthy people is simply taboo?

]]> By: Dr. T http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29468 Dr. T Fri, 29 Aug 2008 19:00:15 +0000 http://localhost/wordpress/?p=3089#comment-29468 <p>I was surprised that you ignored my observation: the entire metric (gross income) is poor. The true metric should be adjusted income (income + government subsidies - all taxes).</p> <p>The main point about changes in household composition is important, too, but using the wrong income measure is, in my opinion, a bigger problem.</p> I was surprised that you ignored my observation: the entire metric (gross income) is poor. The true metric should be adjusted income (income + government subsidies – all taxes).

The main point about changes in household composition is important, too, but using the wrong income measure is, in my opinion, a bigger problem.

]]> By: SteveO http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29467 SteveO Fri, 29 Aug 2008 16:47:13 +0000 http://localhost/wordpress/?p=3089#comment-29467 <p>And I get nothing. I will go hang my head in shame.</p> <p>Congrats LCJoe. </p> And I get nothing. I will go hang my head in shame.

Congrats LCJoe.

]]> By: Charlie http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29466 Charlie Fri, 29 Aug 2008 15:04:19 +0000 http://localhost/wordpress/?p=3089#comment-29466 <p>"How important is this effect? I don't know."</p> <p>-Russ</p> <p>Are you just making a methodological complaint or are you arguing that inequality hasn't risen over the period in question?</p> <p>If it is the latter, if I post data showing increases in within group inequality, will that change your opinion at all? Will you have a post saying "Inequality has risen"?</p> <p>My point is that the answere to the question I quote at the top is known. If presented with that new data, will you opinions/beliefs about anything change?</p> <p>Charlie</p> "How important is this effect? I don't know."

-Russ

Are you just making a methodological complaint or are you arguing that inequality hasn't risen over the period in question?

If it is the latter, if I post data showing increases in within group inequality, will that change your opinion at all? Will you have a post saying "Inequality has risen"?

My point is that the answere to the question I quote at the top is known. If presented with that new data, will you opinions/beliefs about anything change?

Charlie

]]> By: Charlie http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29465 Charlie Fri, 29 Aug 2008 14:37:19 +0000 http://localhost/wordpress/?p=3089#comment-29465 <p>Sorry about the multiple postings. Technical differences over here.</p> Sorry about the multiple postings. Technical differences over here.

]]> By: Charlie http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29464 Charlie Fri, 29 Aug 2008 14:32:05 +0000 http://localhost/wordpress/?p=3089#comment-29464 <p>"The main factor, presumably, is an increase in the divorce rate over the period."</p> <p>Whoops, another victim of the divorce myth. Here is Justin Wolfers setting you straight at MR.</p> <p>"<a href="http://www.marginalrevolution.com/marginalrevolution/2007/09/the-divorce-myt.html" rel="nofollow">URL Label</a>"</p> "The main factor, presumably, is an increase in the divorce rate over the period."

Whoops, another victim of the divorce myth. Here is Justin Wolfers setting you straight at MR.

"URL Label"

]]> By: Charlie http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29463 Charlie Fri, 29 Aug 2008 14:31:50 +0000 http://localhost/wordpress/?p=3089#comment-29463 <p>"The main factor, presumably, is an increase in the divorce rate over the period."</p> <p>Whoops, another victim of the divorce myth. Here is Justin Wolfers setting you straight at MR.</p> <p>"<a href="http://www.marginalrevolution.com/marginalrevolution/2007/09/the-divorce-myt.html" rel="nofollow">URL Label</a>"</p> "The main factor, presumably, is an increase in the divorce rate over the period."

Whoops, another victim of the divorce myth. Here is Justin Wolfers setting you straight at MR.

"URL Label"

]]> By: Dave http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29462 Dave Fri, 29 Aug 2008 14:28:28 +0000 http://localhost/wordpress/?p=3089#comment-29462 <p>Charlie, the divorce rate may be declining, but a smaller percentage of adults are getting married in the first place. So, the point that fewer adults are cohabiting, which is what is relevant here, could still be valid, even if it wasn't phrased correctly.</p> <p><a href="http://doh.sd.gov/Statistics/2005Vital/Marriage.pdf" rel="nofollow">This is the link cited in the comments at MR for data.</a></p> Charlie, the divorce rate may be declining, but a smaller percentage of adults are getting married in the first place. So, the point that fewer adults are cohabiting, which is what is relevant here, could still be valid, even if it wasn't phrased correctly.

This is the link cited in the comments at MR for data.

]]> By: cpurick http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29461 cpurick Fri, 29 Aug 2008 14:20:14 +0000 http://localhost/wordpress/?p=3089#comment-29461 <p>This is really good. Should we now expect he-who-shall-not-be-named to update his blog entry, LOL???</p> This is really good. Should we now expect he-who-shall-not-be-named to update his blog entry, LOL???

]]> By: Charlie http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29460 Charlie Fri, 29 Aug 2008 13:37:27 +0000 http://localhost/wordpress/?p=3089#comment-29460 <p>"The main factor, presumably, is an increase in the divorce rate over the period."</p> <p>Whoops, another victim of the divorce myth. Here is Justin Wolfers setting you straight at MR.</p> <p>"<a href="http://www.marginalrevolution.com/marginalrevolution/2007/09/the-divorce-myt.html" rel="nofollow">URL Label</a>"</p> "The main factor, presumably, is an increase in the divorce rate over the period."

Whoops, another victim of the divorce myth. Here is Justin Wolfers setting you straight at MR.

"URL Label"

]]> By: Charlie http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29459 Charlie Fri, 29 Aug 2008 13:33:51 +0000 http://localhost/wordpress/?p=3089#comment-29459 <p>"The main factor, presumably, is an increase in the divorce rate over the period."</p> <p>Whoops, another victim of the divorce myth. Here is Justin Wolfers setting you straight at MR.</p> <p>"<a href="http://www.marginalrevolution.com/marginalrevolution/2007/09/the-divorce-myt.html" rel="nofollow">URL Label</a>"</p> "The main factor, presumably, is an increase in the divorce rate over the period."

Whoops, another victim of the divorce myth. Here is Justin Wolfers setting you straight at MR.

"URL Label"

]]> By: Esox Lucius http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29458 Esox Lucius Fri, 29 Aug 2008 12:48:28 +0000 http://localhost/wordpress/?p=3089#comment-29458 <p>WOOHOO! I win the kindle. Or was it a scholarship to GMU, I can't remember...</p> WOOHOO! I win the kindle. Or was it a scholarship to GMU, I can't remember…

]]> By: floccina http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29457 floccina Fri, 29 Aug 2008 12:42:12 +0000 http://localhost/wordpress/?p=3089#comment-29457 <p>Spencer are considering the fact that there are more retired people now. </p> Spencer are considering the fact that there are more retired people now.

]]> By: spencer http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29456 spencer Fri, 29 Aug 2008 12:26:58 +0000 http://localhost/wordpress/?p=3089#comment-29456 <p>Actually demographics should have produced a rise in average income over the last 30-40 years. The biggest change in income stems from people aging and because of the aging of the baby boomers the average age of the population has been rising since 1960. </p> Actually demographics should have produced a rise in average income over the last 30-40 years. The biggest change in income stems from people aging and because of the aging of the baby boomers the average age of the population has been rising since 1960.

]]> By: Mesa Econoguy http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29455 Mesa Econoguy Fri, 29 Aug 2008 12:24:12 +0000 http://localhost/wordpress/?p=3089#comment-29455 <p>Thanks Russ.</p> <p>Please see <a href="http://mjperry.blogspot.com/2008/08/adjusted-for-household-size-real-income.html" rel="nofollow">here</a> for a far better explanation than mine....</p> <p>Very interesting debate!<br /> </p> Thanks Russ.

Please see here for a far better explanation than mine….

Very interesting debate!

]]> By: dave smith http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29454 dave smith Fri, 29 Aug 2008 12:02:29 +0000 http://localhost/wordpress/?p=3089#comment-29454 <p>I don't understand (ok, I do) why demographics don't completely dominate any discussion of income inequality.</p> <p>Another fact in the last 20 ro 30 years would be the delay of marriage that creates many one income households in the low income range.</p> I don't understand (ok, I do) why demographics don't completely dominate any discussion of income inequality.

Another fact in the last 20 ro 30 years would be the delay of marriage that creates many one income households in the low income range.

]]> By: Ken http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29453 Ken Fri, 29 Aug 2008 11:57:43 +0000 http://localhost/wordpress/?p=3089#comment-29453 <p>It's also worth pointing out that percents are zero sum, meaning for an extra percentage point to go into any bin, it means another bin has to lose this percentage point. For income, though, if person A gets a dollar raise, no one has to take a pay cut of a dollar.</p> It's also worth pointing out that percents are zero sum, meaning for an extra percentage point to go into any bin, it means another bin has to lose this percentage point. For income, though, if person A gets a dollar raise, no one has to take a pay cut of a dollar.

]]> By: Ken http://cafehayek.com/2008/08/measuring-inequ.html/comment-page-1#comment-29452 Ken Fri, 29 Aug 2008 11:57:12 +0000 http://localhost/wordpress/?p=3089#comment-29452 <p>It's also worth pointing out that percents are zero sum, meaning for an extra percentage point to go into any bin, it means another bin has to lose this percentage point. For income, though, if person A gets a dollar raise, no one has to take a pay cut of a dollar.</p> It's also worth pointing out that percents are zero sum, meaning for an extra percentage point to go into any bin, it means another bin has to lose this percentage point. For income, though, if person A gets a dollar raise, no one has to take a pay cut of a dollar.

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