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Showing posts from March, 2017

Income Inequality and the Relativity of Success

We Americans tend to measure our material success relatively, not absolutely.  In other words, we judge our personal success not just on  how much  influence, money, etc. we have, but how much we have compared to those around us,  ceteris paribus . There is a growing sense, particularly in the millennial generation, that it is simply unfair for so few people to own so much of the capital circulating the country.  Some are even calling for a total reformation of the market-based economy the United States is so well-known for because they feel it has failed all but a fortunate few (note the success of the Bernie Sanders campaign). Despite these sentiments, the current generation of Americans possesses far more than any generation previous.  More desirable  things  are more commonly available.  Consider spending patterns over the last hundred or so years.   First, food expenditures as a percentage of income have plummeted during the la...