[fluff]

Interesting article:

http://www.theglobalist.com/DBWeb/StoryId.aspx?StoryId=4423
Quote:

The United States and the Chinese rulers each are enabling the other to pursue their risky economic and social policies.

It is not only the Chinese leadership that depends on this arrangement to smooth over income inequality. The United States is at least equally dependent on China in this regard.

But increasingly, it is not only the Chinese leadership that depends on this arrangement to smooth over its rapidly growing income inequality and preserve domestic stabilty.

The United States is at least equally dependent on China in this regard. Already, the U.S. income gap is closer to Argentina's than Germany's.

And in spite of the most unequal income distribution of any rich country, the Bush Administration is determined to enact taxation and spending policies that will further increase U.S. income inequality

 

[Changleen]

As I understand it, income inequality is a direct product of capitalistic growth, and in a nominal situation of equal taxes the amount of inequality is a good measure of the speed of growth of the given economy. The faster the growth, the greater the potential disparity. However, another component of this growth is that everyone does become richer, it's just that some people get richer faster. Slower growth results in a tighter distribution of wealth and a slower increase in the average wage. This is all well and good.

However, in the case of the US, I am amazed that GW seeks to artificially increase this disparity, apparantly for entirely selfish/crony driven reasons. I am equally suprised that the US populace seems to support this, or is perhalps ignorant of the situation.

Also interesting are the logical conclusions of this article in light of China's recent announcement of the ant-succession law, and the US's typical overbearing reaction to it. Once again the US appears to be looking for an economic kick in the teeth.

When it comes to the economy of the US and the welfare of it's people, you've gotta wonder if GW isn't an Al Queda agent. He seems determined to do as much damage as possible to the long term economic health of the nation. Greenspan, and that Billionaire investor dude are just two of many many high profile financially savvy types who are decrying the current economic policies. Will George listen? I doubt it.

 

[Westy]

The income gap only has to do with poor people being lazy. Or their parents being lazy, or their grandparents, or great grandparents or.....

 

[Changleen]

The income gap only has to do with poor people being lazy. Or their parents being lazy, or their grandparents, or great grandparents or.....

Or being disabled. Or Black. Or Hispanic.

 

[Changleen]

From the article:

U.S. imports from China amounted to $200 billion in 2004, a whopping 30% increase over 2003. That export success also made China the second largest exporter of goods to the United States — behind only Canada, with $256 billion in exports.

If you compare this figure (30%) to the economic growth as a whole (45%), then in reality it is 15% behind what you might expect. Another way of reading this could be that China is trying to limit it's dependance on America. Just a thought.

 

[ALEXIS_DH]

The income gap only has to do with poor people being lazy. Or their parents being lazy, or their grandparents, or great grandparents or.....

well, i find this argument flawed.

if it was right, then we can just go back indefinetely finding the root cause of the misery of today´s people...

and what do we find?? that at some point, blacks taken as slaves had their opportunities severed, the same with indians, and every ethnic group on earth subjugated by another.

yet you say its the slaves or the indians or whatever ethnic-group-stomped-by-another´s fault, because going back in your chain, it all reduces to that.

 

[fluff]

well, i find this argument flawed.

if it was right, then we can just go back indefinetely finding the root cause of the misery of today´s people...

and what do we find?? that at some point, blacks taken as slaves had their opportunities severed, the same with indians, and every ethnic group on earth subjugated by another.

yet you say its the slaves or the indians or whatever ethnic-group-stomped-by-another´s fault, because going back in your chain, it all reduces to that.

I have a feeling that Westy was being sarcastic. Just a feeling...

What amazes me (actually that's not true, it doesn't surprise me that much - it is actually more disappointing but I digress) is that given the increasing disparity in income the majority of the US voters still put Bush back into office; just goes to show the power of the politics of fear.

However, I can understand why Bush is doing it. In the same way that the stock markets push companies to try and maintain increasing growth (and in fact growth of growth) to maintain their value so, it appears now, national administrations (governments by any other name) must also do the same. It does smack of short-termism though, and any resultant backlash or crash will come sooner and harder.