Posts Tagged ‘Economic Incentives’

Do the 1 percent carry the rest of us?

January 4, 2012

There are two ways to interpret this chart.  One is that 1 percent of the American population are John Galts who single-handedly have generated all the economic growth in the past 30-some years.  I’m sure that many people in this group think just that.  The other interpretation is that the system is rigged to redistribute the income of the 99 percent upward to the 1 percent.  That seems to me to be more plausible.

A wise economist told me once that economics is the study of how people respond to incentives.  There ought to be incentives to all the producers–and I don’t think this group is limited to 1 percent of the population.

Hat tip to Hullabaloo.