Income Inequality

I've seen this video before, but someone had it posted on FB today so I rewatched it, and I was still shocked and appalled!

To be fair, we have to talk about some other stats.  There is another video that talks about income mobility (how easy is it to move from one group to the next), and is the share of absolute income decreasing for the lower classes?

In short, it shows that the poor did not get poorer.  Adjusted for inflation, the highest 20% made 71% more in 2009 than in 1976 (I wish these numbers were more up to date but it's what I found), and the lowest 20% made 25% more in 2009 than in 1976.  So the poor have not gotten poorer...they just didn't get richer at the same level as wealthier people.

The video also shows that there is about 40% income mobility in either the lowest or highest quintile.  I found it interesting that the 40% of people in this study who managed to get out of the lowest were able to rise, but none to the top two quintiles.  The video also shows that 40% of those in the highest quintile fell to lower levels (mostly one or two levels below with a few rare exceptions all the way to the bottom).

That's all fine and good.  I then wonder how the cost of living has increased--and how has it increased relative to the absolute income increase.  If cost of living is increasing 50% between 1976 and 2009, then a 25% increase in wages for the poorest Americans is in fact making them poorer.  This other video I watched doesn't compare the wages to the cost of living increases, but it does say that in terms of labor hours (how long you have to work to make enough money to buy something) the cost of living now is cheaper than in the 1970s.

If you are like me, you are wondering if this income distribution fair?  I would venture to guess most people at the bottom think it's not fair, and most people at the top think it is fair (probably a few bleeding hearts at the top that don't think it's fair but also aren't rushing to give up their salary so the janitor can make more--no judgement, I'm not doing that even though I don't think it's fair--I guess you can judge me if you want).

I also find myself wondering regardless of the fairness of it, maybe the better question is do we want to live in a society with a gap like that?  Nobody wants to be at the bottom--we don't have to debate that.  If at the top, do you want to be surrounded by those who have less?  Do you worry about ignorance from lack of education negatively affecting you?  Do you worry about crime because people get desperate and do things for money that may negatively affect you?  Do you worry about if you are part of the 40% that is unlucky and falls from grace?  Does your conscious bother you at all?  That's not the society I want.  Maybe I should cut my paycheck?  Ugh, but can you go first?!  : )

I don't have an answer, just noodling.