The Inequality Drum

They’ve destroyed Western Civilization and these professional propagandists are still chirping about income inequality.

open quotehe long-term projections produced by official agencies, like the Congressional Budget Office, generally make two big assumptions. One is that economic growth over the next few decades will resemble growth over the past few decades. In particular, productivity — the key driver of growth — is projected to rise at a rate not too different from its average growth since the 1970s. On the other side, however, these projections generally assume that income inequality, which soared over the past three decades, will increase only modestly looking forward.

It’s not hard to understand why agencies make these assumptions. Given how little we know about long-run growth, simply assuming that the future will resemble the past is a natural guess. On the other hand, if income inequality continues to soar, we’re looking at a dystopian, class-warfare future — not the kind of thing government agencies want to contemplate. close quote (Read more)

One comment

  1. In the body of the article by Krugman, he states, “The
    point is that there’s good reason to believe that the
    conventional wisdom embodied in long-run budget
    projections — projections that shape almost every
    aspect of current policy discussion — is all wrong.”

    This is an interesting comment from Krugman.
    Understand he is a Kensyian. Kensyian economics
    is Marxism soft. Keynes was really a Marxist fetted
    in Moscow as such.

    It will be recalled how many of the Soviet 5 year
    plans failed – all did!

    So here we have a guy who is essentially a socialist
    saying the plans will fail?

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