Re: how to compare living standards


"tonyp" <tonyp@xxxxxxxxxxxxx> wrote in message
news:J5udnVFhPd_JmPzZnZ2dnUVZ_tydnZ2d@xxxxxxxxxx

"Jim Blair" <jeb@xxxxxxxx> wrote

When I say "those at the top (in 1990) gained more
than those at the bottom", that says nothing about
where those individuals were in 1980.


Ah, but what about their relative standing in 2000?

Hi,

???? Just move the time frame up a decade. Start in 1990 and end on 2000.

.......If you're in the top
quintile in 1990, and your income grows more during the decade than the
income of someone in the second quintile, how in the name of arithmetic do
you change places in the distribution?

Oh, I forgot: _your_ idea of "income mobility" is that "everyone can move
up a quintile without anybody moving down" :-)

Of course they can. I didn't claim that EVERYONE does move up with time,
but they could.

Mobility example Units can be kilobucks of income or assets in any units or
whatever.
Consider 5 quintiles.

Time 1 (1990)

Top =50 units
Second=40
Third =30
4th =20
Bottom=10

Time 2 (2000)

Top =100 units
Second=50
Third =40
4th =25
Bottom=8


Q Did the "rich get richer"?
A In some sense.

Q Did the "poor get poorer"?
A In some sense.

Q What does this say about "mobility"?
A Nothing

To make things easy, say each quintile contains only one member.

Time 1

Top =Adam
Second=Bob
Third =Chuck
4th =Don
Bottom=Fred

Time 2

Top =Fred
Second=Chuck
Third =Bob
4th =Don
Bottom=Miguel

Note that no one got poorer in absolue terms (units).
Bob dropped only relative to the group because he remained the same.

Q What happened to Adam?
A He died. People do.

Q Where did Miguel come from?
A Mexico, and his 8 units is 4 times what he had there. He gained more
percentage than anyone except Fred.

Note that everyone got richer with the possible exception of Adam.


....Second, illegal labor is cheap for the same reason
that illegal drugs are expensive.

??? I don't see the connection or analogy.


Aw, c'mon, Jim. In both cases, the law distorts the "free market".

.. Do you
suppose marijuana or cocaine would get more expensive if we legalize them?

-- TP

They would likely be cheaper, even after the tax on them.



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