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Holy crap! the “why didn’t I think of that?” edition

April 25th, 2008

Fully 2/3rds of growth in inequality over the last decade can be attributed to different rates of inflation experienced by the rich and poor. MR has the scoop.

This entry was posted on Friday, April 25th, 2008 at 8:46 pm and is filed under inequality.

4 Responses to “Holy crap! the “why didn’t I think of that?” edition”

  1. Gabriel Says:
    April 26th, 2008 at 12:27 am

    Does not compute. Income is income is income.

  2. pushmedia1 Says:
    April 26th, 2008 at 2:23 am

    That doesn’t compute. Real income is real income is real income. If rich people buy stuff that has been inflating more than poor people, then their nominal income should be deflated more. Once you deflate appropriately, much of the growing difference in incomes is just nominal.

  3. Gabriel Says:
    April 26th, 2008 at 9:30 am

    Had their budget set not shrunk? Have they not substituted? Maybe it shrank where it was not binding the worst…

    I understand the idea and, on second thought, my problem might be with the formulation.

  4. The Ambrosini Critique » Blog Archive » Over… stim… ulation… Says:
    July 6th, 2008 at 7:46 pm

    [...] buy and so in real terms inequality didn’t much increase in the last decade” crowd (aka Broda and Romalis). And he does so not in his usual “I’m a social democrat following marching [...]