tag:blogger.com,1999:blog-2761684730989137546.post2984374892578496739..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: Mathbabe — Income distributions and misleading poll questions (#OWS)mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2761684730989137546.post-22605347610852362282012-07-29T11:20:50.822-04:002012-07-29T11:20:50.822-04:00Stocks vs flows
Hence the logic of the income tax...Stocks vs flows<br /><br />Hence the logic of the income tax. If you want to reduce the amount of water in a leaky bucket, you start by reducing the flow from the tap!Clonalhttps://www.blogger.com/profile/18290009954839887975noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-26842790211617502612012-07-29T08:37:57.361-04:002012-07-29T08:37:57.361-04:00I think even stock is a misnomer - it is a running...I think even stock is a misnomer - it is a running total not a static "quantity" of things.<br /><br />Again these are merely semantic constructs devised to describe abstract processes. It isn't that cut-and-dried in my view, hence the reason there are always disagreements ovr these kinds of arguments.<br /><br />Whether or not she is talking about flows or stocks she is focused on making a broader point without writing a technical paper on it.<br /><br />Those of us that look at things in the abstract sense first should be able to read between the lines and see the broader argument.<br /><br />Those that are semantic-based thinkers (majority) may have trouble grasping the finer points and making those distinctions may confuse them.<br /><br />Or maybe I'm just navel-gazing…paul melihttps://www.blogger.com/profile/04604543110795683837noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-43400550679333700442012-07-29T06:15:34.912-04:002012-07-29T06:15:34.912-04:00"as the title says income, while the body of ..."as the title says income, while the body of the article deals with the wealth"<br /><br />Right the first is a flow and the second is a stock.... <br /><br />We can see how normal brain function is disrupted once the topic becomes one based on "money".... here a woman who probably is pretty decent at math is caught up in not recognizing the difference between a stock and a flow....<br /><br />rsp,Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-83584641975699481372012-07-29T00:44:40.699-04:002012-07-29T00:44:40.699-04:00If I look at the data provided by the IRS on Tax R...If I look at the data provided by the IRS on Tax Returns and do a similar arithmetic by re-instituting the 90% top tax rate on incomes above $250K while keeping the other tax brackets the same, and distributing that tax revenue (from 250K and above) as a tax credit equally across the board -- income disparity between the CEO of a Fortune 500 corp and its lowest paid worker from 600 to 1 today back to 26:1 as it was in the 1960'sClonalhttps://www.blogger.com/profile/18290009954839887975noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-64611744210733215392012-07-28T19:44:27.894-04:002012-07-28T19:44:27.894-04:00First,
The title of her article is incorrect, as ...First,<br /><br />The title of her article is incorrect, as the title says income, while the body of the article deals with the wealth distribution. There is a big difference between wealth and income.<br /><br />I redid her calculations, and came up with a very different way of presenting her suggestions.<br /><br />So here goes:<br /><br /><i>Let us cap Wealth at the average of what the top 5% minus the top 1% have<br /><br />That average is 27.3/4 = 6.825 %<br /><br />So the top 5% now get 6.825 x 5 = 34.125<br /><br />The difference between what the top 5% and the new top 5% = 34.6 + 27.3 - 34.125 = 61.9 - 34.125 = 27.775<br /><br />No we distribute the 27.775 equally to everybody = 0.27775%<br /><br />So New Distribution shows the increase for each group, and their comparson to the new bottom 40% wealth level.<br /><br />Bottom 40% share = 0.2+ 40 x 0.2775 = 11.31 average = 0.283 Increase 56 x or 1 x bot 40%<br />Middle 20% share = 4 + 20 x 0.2775 = 9.56 average = 0.478 Increase 2.39 x or 1.68 x b40<br />60-80% share = 10.9 + 20 x 0.2775 = 16.44 average = 0.822 Increase 1.5 x or 2.9 x b40<br />Next 10% share = 12% + 10 x 0.2775 = 14.78 average = 1.478 Increase 1.23 x or 5.2 x b40<br />Next 5% share = 11.2 + 5 x 0.2775 = 12.59 average = 2.518 Increase 1.13 x 8.9 or x b40<br />Next 4% share = 27.3 + 4 x 0.2775 = 28.41 average = 7.10 Increase 1.04 x or 25x b40<br />Top 1% share = 6.825 + 1 x 0.2775 = 7.1 average = 7.10 Decrease 0.20 x or 25x b40<br /><br />A similar analysis can done for the income levels - which I intend to do.</i>Clonalhttps://www.blogger.com/profile/18290009954839887975noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-15833562747604434142012-07-28T14:14:41.107-04:002012-07-28T14:14:41.107-04:00This comment has been removed by the author.Clonalhttps://www.blogger.com/profile/18290009954839887975noreply@blogger.com