Absolutely YWIW.
In econ terms we call that "work effort" or "structural inequality" which basically translates into a reasonable amount of inequality being necessary for incentive.
What you're expressing is a conclusion right from the study I linked. The catch is that you need good policies to ensure that an economy maintains a
reasonable level of inequality.
What we are experiencing now is an income gap that is widening too quickly at a time when we need economic growth the most.
Let me just quote this one point (highlighted phrase is my doing)
Equality of opportunity can make for both more equal and more efficient outcomes (World Bank, 2005). For example, effective investments in health and education—human capital—may be able to square the circle of promoting durable growth and equity while avoiding shorter-run disincentive effects The bottom line is that it all comes down to good governance.
This is why I'm so happy that the people are now in "in their faces" at various congressional offices in DC. They have established their frustration and now are getting to the heart where true change will occur.
....but the world goes 'round
Updated On: 12/7/11 at 10:47 AM