The Pay of Corporate Executives and Financial Professionals as Evidence of Rents...
The debate over the extent and causes of rising inequality of American incomes and wages has now raged for at least two decades. In this paper, we will make four arguments. First, the increase in the incomes and wages of the top 1 percent over the last three decades should be interpreted as driven largely by the creation and/or redistribution of economic rents, and not simply as the outcome of well-functioning competitive markets rewarding skills or productivity based on marginal differences. This rise in rents accruing to the top 1 percent could be the result of increased opportunities for rentshifting, increased incentives for rent-shifting, or a combination of both. Second, this rise in incomes at the very top has been the primary impediment to having growth in living standards for low- and moderate-income households approach the growth rate of economy-wide productivity. Third, because this rise in top incomes is largely driven by rents, there is the potential for checking (or even reversing) this rise through policy measures with little to no adverse impact on overall economic growth. Lastly, this analysis suggests two complementary approaches for policymakers wishing to reverse the rise in the top 1 percent's share of income: dismantling the institutional sources of their increased ability to channel rents their way and/or reducing the return to this rent-seeking by significantly increasing marginal rates of taxation on high incomes.
time and time again I have stated and provided evidence that the top earners in the US are not creating new wealth but simply redistributing it from the top to the bottom with various rent seeking activities.
There's a misnomer of the "top 1%" in here. It should really be the top ".1%"
If you make 1 million/year in California and its not shielded by some corporate entity you created, then you can bet your ass that you will be paying about 1/3 of that or more back to the state and Government.
Why would policymakers be interested in changing this trend? They all make a ton of money and have corporate ties.
Real estate was (and arguably is) a good investment. People catch on. I'm sure people buying investment properties are thinking "Fuck yeah, time to dismantle the poor even more!!"
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