Income inequality a good thing?
While searching for airline tickets, I mistyped a domain name and ended up at American.com. On this site I found a link to an article titled The Upside of Income Inequality.
Of course your first instinct might be to shout something like "Down with those damn rich people! They are always taking all of the money!". Well according to this article they are actually earning all of the damn money. The ditch which sat between the high school educated worker and the college educated worker has become a chasm. Apparently while the high school educated group has grown with inflation, the college educated group has been growing far above it. This is thought to be due to the shift in America's economy away from labor and towards information management. Anyway, the article points out that while the gap grows larger is doesn't mean that the rich are getting richer while the poor get poorer. (Note: the rich always get richer, it's what they do best) It's actually the middle class that has excelled and pulled away from the lower end of the spectrum and is moving up towards the rich.
One other thing that caught my attention in this article is that women and minorities seem to benefit the most from a college education in terms of income growth percentage. I suspect that this is because of the disproportionately low income they might have made before becoming college educated. But hey, what do I know?
