Source Entries
Citation #1
Eduardo Porter. “A Relentless Widening of Disparity in Wealth” Economic Scene. March 11,
Summary
Thomas Piketty wrote a book where he talks about wealth disparity, inequality, and inherited wealth. In the book, he talks about the belief that many Americans have, where they think inequality will eventually stabilize itself. However, he says it’s a wrong idea and it won’t happen. Matter of fact, it has and will continue to grow over the years. He pointed out the idea that the Russian-American economist, Simon Kuznets, had from 1913 to 1948. There was a ten percent of the population that was absorbing the income of the nation and Mr. Kuznets thought that it would eventually decline. However, professor Piketty shows that it has been growing since then and will continue to grow to dominate the economy, among inherited wealth. Furthermore, it will continue unless there are some political actions that slow or reverse inequality. Even though there is no political history that could give us hope, that could be an option.
Reflection
I agree with what this article says. It also gives data and statistics that are important so we can trust and analyze what the author is saying. He also mentions an idea that another economist had back in the 1913’s and he shows how the economy has changed.
My question would be, what would the results of new research about this topic be? since this one was made in 2014.
I had to look up who was “Simon Kuznets” so I could understand the article better.
My research question it’s “Will wealth disparity/income disparity continue to grow?”. He does respond to it by saying that it will continue to grow.
Quotations
“His most startling news is that the belief that inequality will eventually stabilize and subside on its own, a long-held tenet of free-market capitalism, is wrong. Rather, the economic forces concentrating more and more wealth into the hands of the fortunate few are almost sure to prevail for a very long time.” Eduardo Porter, Talking about Thomas Piketty’s book.
Citation #2
Eduardo Porter. “Study Finds Wealth Inequality Is Widening Worldwide.” World Business.
December 6, 2006. https://www.nytimes.com/2006/12/06/business/worldbusiness/06wealth.html?searchResultPosition=16
Summary
The author of this New York Times article, Eduardo Porter, talks about how over the years experts have been worried about the distribution of the world income. They are worried about the income inequality that exists. Wealth is a difficult matter to measure but, he uses specific data along with some assumptions, to have an idea of what is going on with the world’s economy. By doing so, Eduardo Porter says that “Income inequality shows few signs of abating in most countries”. He includes countries such as Switzerland, the United States, Indonesia, Canada, among others. Furthermore, instead of abating, inequality is growing very fast in countries like China and India.
Reflection
I agree with what the article says. It gives specific data that proves how the economy or the income inequality it’s growing.
The question I have about the text is, what were the assumptions that the authors had to make to have this conclusion?
I understood everything, therefore, I did not have to look at anything.
I would tell the author that I noticed he is an expert in this topic since he also wrote the first article that I used.
This document tells me that the wealth inequality/Income inequality it’s not giving any signs of going backward. It’ll continue to grow.
Quotation
“Income inequality shows few signs of abating in most countries” Eduardo Porter.
Citation #3
“Why The Inequality Gap Is Growing Between Rich And Poor” May 29, 2019.
Summary
The video published by CNBC, titled “Why The Inequality Gap Is Growing Between Rich And Poor” talks about the growing income inequality. Even Though since 1981 the number of people who lived in extreme poverty had decreased, the inequality in some countries has surged and keeps rising. It explains some of the possible causes such as the implementation of new technology that reduces human labor. They gave very specific and detailed data that shows us the increasing line of income for those at the top of the economy leaving the rest behind. It also mentions how the minimum wage instead of rising to follow the inflation, actually drops. The economy usually helps the high educated and hurts the less educated.
Reflection
I agree with the video because it gives very specific examples. It gives reasons for why the income disparity continues to grow and even explains how it all begins.
One question that I have is, what could be a reasonable solution to stop inequality from growing?
I didn’t need to look up anything, the video was very clear. I had to rewatch to make sure I understood but, just because I like to do that.
I would like to thank the author for explaining this topic as clearly as they did.
The video tells me that countries with advanced economies are the most hurt by wealth/income inequality. Of course, it also says that this issue will continue to grow.
Quotation
“but in countries with advanced economies, inequality of income and wealth has surged. and nowhere has it surged more than in the U.S. where reliance on free-market forces has been strongest. that magnifies rewards for those at the top and leaves most others behind.” CNBC.
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