Recall that Henry Ford wanted his employees to be able to buy his cars. If you are selling something that you want millions of people to buy, you generally want income to be distributed more widely so that more people can buy it. If you are a Maserati dealer, you want to see more multi-millionaires. But even multi-millionaires can only garage so many cars.
As manufacturing moves away from the US, the political interest for distributing income goes down. The Chinese who are making all the stuff poor people buy at Walmart are neither movtivated or able to improve their paychecks.
Our economy has been called the FIRE economy for Finance, Insurance, and Real Estate. It does not require a flat income distribution because its easier to sell a $10M house to someone that a $100,000 house to 100 people.
Saturday, June 14, 2008
If I haven't seen far it's because I've been surrounded by giants.
Written after attending Ivan Sutherland's birthday party.
SOV drivers, not SUV drivers, are SOB drivers.
Two people in an SUV use the same amount of gas as a Single Occupancy Vehicle (SOV). Let's increase the occupancy rate to reduce congestion, pollution, and loneliness.
Saturday, January 19, 2008
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