Woot. Paul Krugman started a blog. This gives one the opportunity to ask “Huh?” to various silly comments by the future Nobel prize winner on a regular basis…

For previous installments in this series, see (x and y => z) does not contradict (!x => z), Insurance Companies aren’t profit mazimizing, Instapundit moment, and Meaningless words from Paul Krugman.

In his inaugural post, he shows this diagram ((It shows the percent of income going to top 10% income earners)), a diagram I’ve been staring at a lot lately:

And says:

The middle-class society I grew up in didn’t evolve gradually or automatically. It was created, in a remarkably short period of time, by FDR and the New Deal. As the chart shows, income inequality declined drastically from the late 1930s to the mid 1940s, with the rich losing ground while working Americans saw unprecedented gains.

Here it comes…



The “Great Compression,” aka a precipitous drop in income inequality, happened in 1941 (not through the 30’s and mid 40’s). What else happened in that year? What do you suppose financed that happening? What did the National War Labor Board do, I wonder.

2 thoughts on “Huh?”

  1. Why does this matter?

    That is…

    If the middle class can support it’s families and live comfortably, why does it matter how much more money the upper class has?

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