On Tue, 06 Aug 2013 08:32:55 +0100, scott wrote:

>>> Just wait, the gradient of average GDP increase (in real terms) has
>>> been a steady doubling every 15 years since about 1850, and has shown
>>> no signs of slowing.
>>
>> Meanwhile, the income gap has increased by more than that, and also
>> shows no signs of changing.  So the rich get richer, the poor get
>> poorer, and upward mobility is stifled.
> 
> Any evidence for that comment? 

Absolutely.

Between 1967 and 2003 here in the US, according to the US Census Bureau, 
people in the bottom 20% of incomes have seen their incomes raise an 
average of 28.4%. ($14,002 at the start and $17,984 in 2003)

At the same time, people in the 95th percentile have seen their average 
incomes go up by about 78%. ($88,678 in '67, $154,120 in '03).

$1 in 2003 has the same buying power, though, as $0.18 in 1967. (or in 
the inverse, a dollar back then is worth a little over $6 now).

Right now, if I buy a gallon of milk, I pay about $4.50 for the brand we 
prefer.

According to the CPI inflation calculator (at bls.gov), in 2003, that 
gallon of milk would have cost $3.55.  In '67, it would've been $0.64.

So inflation over the '67-'03 time period was 600%, but incomes for the 
bottom 20% only went up 28%.  Relative to purchasing power, those 
families lost a lot of money (arguably those in the top 5% also lost a 
lot of buying power, but when you have enough money for the essentials, 
that becomes less of an issue - when you're only bringing in $17,000/
year, 600% inflation hurts a lot more than when you're bringing in 
$150,000 - because you can afford the essentials).

> Even in the last 40 years the poor have
> not been getting poorer:
> 
> http://rs.resalliance.org/wp-content/uploads/2009/10/
worldincome1970_2006.jpg
> 
> Another chart here, global poverty has reduced from about 90% of the
> population in 1800 to just above 20% by 2000.
> 
> http://blog.compassion.com/wp-content/uploads/2009/10/Global-
Poverty-1820-1992_graph-1.jpg
> 
> That's quite some progress, especially given the world population also
> increased by a factor of about 6 in the same time period.

I'm talking in the US, and those values don't appear to take inflation 
into account, it seems.  But those graphs also don't provide sources for 
their data, so they don't seem to be particularly useful.  I can create a 
graph that tells whatever story I want if I don't tell you the source of 
the data.

Jim

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