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Monday, February 05, 2007

Globalization and Inequality

Tim Worstall sums up the two "problems "of Globalization and Inequality.

"Yet in this particular instance I find that my own answer is quite simple. Those poor who are getting richer in other countries are not moving from one level of luxury to a slightly higher one. They are moving from destitution, from not knowing where the next meal is coming from, to something close to a middle class income. They are doing this in their hundreds of millions, across the globe, and that has to be a good thing."

Brad Delong agrees with this but still outlines "an unequal society cannot help but be an unjust society" because of the fact the some are able to capture more than they deserve.
And the Angry Bear thinks it is too simple an explanation.

Greg Mankiw adds
To what extent is inequality of outcomes a source for concern in and of itself?

And Bernake
adds the point in his speech "The Level and Distribution of Economic Well-Being" that inequality has increased in all professions, including professional sports.
Therefore something more subtle is going on than rich CEO's paying themselves.

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