income inequality

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Income of the poorest decile, the median, and the richest decile in the US
2 months ago
- The data shows income thresholds for each decile (tenth of the population), sourced from the World Bank's Poverty and Inequality Platform using national surveys from high-income (after-tax income) and low/middle-income (consumption) countries, with adjustments for own-production and barter in lower-income nations.
- For consistency, only one data series (income or consumption) is kept per country-year, and regional/global estimates are extrapolated using national accounts growth forecasts, all expressed in constant international dollars to account for inflation and cost-of-living differences.
- The data processing involves extracting decile thresholds from auxiliary World Bank percentiles, calculating missing values via API queries, and pooling regional distributions, with country series sometimes adjusted to balance comparability and time length.
Mind the Gap
2 months ago
- Wealth is not money but goods and services created by people, and its generation varies based on individual skill and desire.
- Variation in income is similar to variation in any skill, and market demand determines pay, as seen with CEOs and athletes.
- Three reasons why making money is viewed differently: the childhood 'Daddy Model', historical corruption, and fear of societal harm.
- The 'Daddy Model' incorrectly assumes wealth is fixed and distributed by authorities, ignoring that it must be created.
- Historically, fortunes were often accumulated through theft or corruption, but the middle class changed this by creating wealth.
- Technology increases productivity gaps but reduces material and social gaps between rich and poor.
- Increasing income variation in modern societies can be a sign of health, not injustice, if tied to wealth creation.
- Suppressing income variation, through taxation or theft, leads to overall societal poverty.
- Absolute poverty is more important to avoid than relative poverty; valuing wealth creation benefits everyone.
An Alternative Theory of Unions
2 months ago
- People idealize mid-20th century union jobs as a golden age, but this perspective may overstate their significance.
- In fast-growing markets like mid-century manufacturing, companies prioritized rapid growth over efficiency, paying workers generously to avoid delays.
- High union wages during that era were a temporary anomaly, similar to inflated pay for web consultants during the Internet bubble.
- The decline of unions is not due to moral decline but because the period of rapid industrial growth ended, reducing the need for overpaying labor.
Mark Cuban: fight inequality by giving all workers company stock
2 months ago
- SpaceX's IPO made employees like Juan Hernandez wealthy, with shares worth $880,000.
- Mark Cuban argues that employee stock ownership should be the norm, not the exception, to reduce income inequality.
- Cuban gave equity to all employees at Broadcast.com, creating 300 millionaires after its acquisition.
- He proposes tax incentives for companies that grant proportional stock to all employees, e.g., same percentage for CEO and janitor.
- Research indicates that widespread employee ownership could double household wealth and reduce top 1% wealth by 14%.
The Death of the Creator Middle Class
3 months ago
- The creator economy is growing, but income inequality is worsening, with top creators taking most of the earnings.
- Brands skip mid-tier creators in favor of big names or cheap micro creators, squeezing the middle class.
- AI tools like Google's AI Overviews reduce traffic to content sources, harming writers and bloggers who rely on search.
- Platform algorithms reward extreme content, such as outrage or drama, burying steady, thoughtful work.
- The median creator earnings are declining despite overall growth, indicating a shrinking middle class.
- Trust and long-form content remain strengths for the middle, but reliance on a single platform is risky.

income inequality

Income of the poorest decile, the median, and the richest decile in the US

Mind the Gap

An Alternative Theory of Unions

Mark Cuban: fight inequality by giving all workers company stock

The Death of the Creator Middle Class