Sunday, March 10, 2013

income inequality


Just watched the video clip of the lecture, "Income Inequality" by UC Berkerley economist Emmanuel Saez. A very cruel reality for all developed countries to face: "Only the people with skills and capitals will be the fittest to survive in any society with more automation". Stock may continue to go up, with reasonable corrections, since productivity will continue to go up. High unemployment will be persistent since less labor force is required to sustain high productivity. The following two graphs show both productivity and top 10% income share start to shoot up around 1975. Why? probably because computerization start to help the productivity since 1975 and low-skill labor force started to become less important since 1975.
Just watched the video clip of the lecture, "Income Inequality" by UC Berkerley economist Emmanuel Saez. A very cruel reality for all developed countries to face: "Only the people with skills and capitals will be the fittest to survive in any society with more automation". Stock may continue to go up, with reasonable corrections, since productivity will continue to go up. High unemployment will be persistent since less labor force is required to sustain high productivity. The following two graphs show both productivity and top 10% income share start to shoot up around 1975. Why? probably because computerization start to help the productivity since 1975 and low-skill labor force started to become less important since 1975.
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