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	<title>Comments on: Furman on Inequality</title>
	<atom:link href="http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/feed/" rel="self" type="application/rss+xml" />
	<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/</link>
	<description>The Sweet Release of Reason</description>
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		<item>
		<title>By: Will Wilkinson</title>
		<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10028</link>
		<dc:creator>Will Wilkinson</dc:creator>
		<pubDate>Mon, 18 Jun 2007 14:32:50 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10028</guid>
		<description>Wiliam, I assumed that was just a mistake, and that he was talking about &quot;shares&quot; in both cases.</description>
		<content:encoded><![CDATA[<p>Wiliam, I assumed that was just a mistake, and that he was talking about &#8220;shares&#8221; in both cases.</p>
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		<title>By: Will Wilkinson</title>
		<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10035</link>
		<dc:creator>Will Wilkinson</dc:creator>
		<pubDate>Mon, 18 Jun 2007 14:32:00 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10035</guid>
		<description>Wiliam, I assumed that was just a mistake, and that he was talking about &quot;shares&quot; in both cases.</description>
		<content:encoded><![CDATA[<p>Wiliam, I assumed that was just a mistake, and that he was talking about &#8220;shares&#8221; in both cases.</p>
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		<title>By: William Newman</title>
		<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10027</link>
		<dc:creator>William Newman</dc:creator>
		<pubDate>Mon, 18 Jun 2007 02:30:26 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10027</guid>
		<description>Maybe it&#039;s a typo or something, but a comparison like &quot;the top 1 percent of households have seen their incomes go up by 7 percent and the bottom 80 percent have seen their income shares go down by 7 percent&quot; immediately sets off my &quot;dishonest advocate&quot;/&quot;lying with statistics&quot; alarms. Why slightly-deniably contrast one &quot;income&quot; number on one hand to one &quot;income shares&quot; number on the other hand? Assuming both statistics are interesting, wouldn&#039;t ordinary practice be to compare two &quot;income&quot; numbers (one for each bracket) in one sentence, and then to compare two &quot;income share&quot; numbers in another sentence?

I find it significant that it&#039;s in the direction that, given economic growth over the period, would tend to make the implied comparison sound more dramatic than the underlying numbers actually are. The rich number gets puffed up by the economic growth over the period (because it increases income) while the poor number is chosen not to reflect growth (because growth doesn&#039;t necessarily affect share)? That seems pretty good evidence that if Furman is a dishonest advocate, he&#039;s a leftist. (And I hope that in this context I may be forgiven for crafting the sort of prose which misleads careless readers into a logical fallacy which says something which technically isn&#039;t what I wrote.)</description>
		<content:encoded><![CDATA[<p>Maybe it&#8217;s a typo or something, but a comparison like &#8220;the top 1 percent of households have seen their incomes go up by 7 percent and the bottom 80 percent have seen their income shares go down by 7 percent&#8221; immediately sets off my &#8220;dishonest advocate&#8221;/&#8221;lying with statistics&#8221; alarms. Why slightly-deniably contrast one &#8220;income&#8221; number on one hand to one &#8220;income shares&#8221; number on the other hand? Assuming both statistics are interesting, wouldn&#8217;t ordinary practice be to compare two &#8220;income&#8221; numbers (one for each bracket) in one sentence, and then to compare two &#8220;income share&#8221; numbers in another sentence?</p>
<p>I find it significant that it&#8217;s in the direction that, given economic growth over the period, would tend to make the implied comparison sound more dramatic than the underlying numbers actually are. The rich number gets puffed up by the economic growth over the period (because it increases income) while the poor number is chosen not to reflect growth (because growth doesn&#8217;t necessarily affect share)? That seems pretty good evidence that if Furman is a dishonest advocate, he&#8217;s a leftist. (And I hope that in this context I may be forgiven for crafting the sort of prose which misleads careless readers into a logical fallacy which says something which technically isn&#8217;t what I wrote.)</p>
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		<title>By: William Newman</title>
		<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10031</link>
		<dc:creator>William Newman</dc:creator>
		<pubDate>Mon, 18 Jun 2007 02:30:00 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10031</guid>
		<description>Maybe it&#039;s a typo or something, but a comparison like &quot;the top 1 percent of households have seen their incomes go up by 7 percent and the bottom 80 percent have seen their income shares go down by 7 percent&quot; immediately sets off my &quot;dishonest advocate&quot;/&quot;lying with statistics&quot; alarms. Why slightly-deniably contrast one &quot;income&quot; number on one hand to one &quot;income shares&quot; number on the other hand? Assuming both statistics are interesting, wouldn&#039;t ordinary practice be to compare two &quot;income&quot; numbers (one for each bracket) in one sentence, and then to compare two &quot;income share&quot; numbers in another sentence?

I find it significant that it&#039;s in the direction that, given economic growth over the period, would tend to make the implied comparison sound more dramatic than the underlying numbers actually are. The rich number gets puffed up by the economic growth over the period (because it increases income) while the poor number is chosen not to reflect growth (because growth doesn&#039;t necessarily affect share)? That seems pretty good evidence that if Furman is a dishonest advocate, he&#039;s a leftist. (And I hope that in this context I may be forgiven for crafting the sort of prose which misleads careless readers into a logical fallacy which says something which technically isn&#039;t what I wrote.)</description>
		<content:encoded><![CDATA[<p>Maybe it&#8217;s a typo or something, but a comparison like &#8220;the top 1 percent of households have seen their incomes go up by 7 percent and the bottom 80 percent have seen their income shares go down by 7 percent&#8221; immediately sets off my &#8220;dishonest advocate&#8221;/&#8221;lying with statistics&#8221; alarms. Why slightly-deniably contrast one &#8220;income&#8221; number on one hand to one &#8220;income shares&#8221; number on the other hand? Assuming both statistics are interesting, wouldn&#8217;t ordinary practice be to compare two &#8220;income&#8221; numbers (one for each bracket) in one sentence, and then to compare two &#8220;income share&#8221; numbers in another sentence?</p>
<p>I find it significant that it&#8217;s in the direction that, given economic growth over the period, would tend to make the implied comparison sound more dramatic than the underlying numbers actually are. The rich number gets puffed up by the economic growth over the period (because it increases income) while the poor number is chosen not to reflect growth (because growth doesn&#8217;t necessarily affect share)? That seems pretty good evidence that if Furman is a dishonest advocate, he&#8217;s a leftist. (And I hope that in this context I may be forgiven for crafting the sort of prose which misleads careless readers into a logical fallacy which says something which technically isn&#8217;t what I wrote.)</p>
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		<title>By: mk</title>
		<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10026</link>
		<dc:creator>mk</dc:creator>
		<pubDate>Fri, 15 Jun 2007 15:37:19 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10026</guid>
		<description>What do Rawlsekians say against the argument that money &lt;i&gt;is&lt;/i&gt; the freedom to do certain things? (freedom to buy a snazzy car, get great health care, etc.) In that case, Rawls&#039; minimax criterion would appear to be promoting whatever redistribution policy is empirically &lt;i&gt;monetarily&lt;/i&gt; best for the least well-off [money isn&#039;t the only freedom, of course, so this formulation is too strong]. Clearly equality of outcome doesn&#039;t fit the bill (it results in much less growth over time). But this seems to argue for some level of redistribution, not &quot;arbitrarily chosen&quot; but chosen according to the empirically applied minimax criterion.

I know you must reduce the liberty of rich people to do this, but I am not sure if this is really inconsistent with what Rawls says. (I am no expert, and you probably are, so you can take this as a request for clarification).</description>
		<content:encoded><![CDATA[<p>What do Rawlsekians say against the argument that money <i>is</i> the freedom to do certain things? (freedom to buy a snazzy car, get great health care, etc.) In that case, Rawls&#8217; minimax criterion would appear to be promoting whatever redistribution policy is empirically <i>monetarily</i> best for the least well-off [money isn't the only freedom, of course, so this formulation is too strong]. Clearly equality of outcome doesn&#8217;t fit the bill (it results in much less growth over time). But this seems to argue for some level of redistribution, not &#8220;arbitrarily chosen&#8221; but chosen according to the empirically applied minimax criterion.</p>
<p>I know you must reduce the liberty of rich people to do this, but I am not sure if this is really inconsistent with what Rawls says. (I am no expert, and you probably are, so you can take this as a request for clarification).</p>
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		<title>By: mk</title>
		<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10034</link>
		<dc:creator>mk</dc:creator>
		<pubDate>Fri, 15 Jun 2007 15:37:00 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10034</guid>
		<description>What do Rawlsekians say against the argument that money &lt;i&gt;is&lt;/i&gt; the freedom to do certain things? (freedom to buy a snazzy car, get great health care, etc.) In that case, Rawls&#039; minimax criterion would appear to be promoting whatever redistribution policy is empirically &lt;i&gt;monetarily&lt;/i&gt; best for the least well-off [money isn&#039;t the only freedom, of course, so this formulation is too strong]. Clearly equality of outcome doesn&#039;t fit the bill (it results in much less growth over time). But this seems to argue for some level of redistribution, not &quot;arbitrarily chosen&quot; but chosen according to the empirically applied minimax criterion.

I know you must reduce the liberty of rich people to do this, but I am not sure if this is really inconsistent with what Rawls says. (I am no expert, and you probably are, so you can take this as a request for clarification).</description>
		<content:encoded><![CDATA[<p>What do Rawlsekians say against the argument that money <i>is</i> the freedom to do certain things? (freedom to buy a snazzy car, get great health care, etc.) In that case, Rawls&#8217; minimax criterion would appear to be promoting whatever redistribution policy is empirically <i>monetarily</i> best for the least well-off [money isn't the only freedom, of course, so this formulation is too strong]. Clearly equality of outcome doesn&#8217;t fit the bill (it results in much less growth over time). But this seems to argue for some level of redistribution, not &#8220;arbitrarily chosen&#8221; but chosen according to the empirically applied minimax criterion.</p>
<p>I know you must reduce the liberty of rich people to do this, but I am not sure if this is really inconsistent with what Rawls says. (I am no expert, and you probably are, so you can take this as a request for clarification).</p>
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		<title>By: Gene Callahan</title>
		<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10025</link>
		<dc:creator>Gene Callahan</dc:creator>
		<pubDate>Fri, 15 Jun 2007 13:27:56 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10025</guid>
		<description>Great post! Very clearly put.</description>
		<content:encoded><![CDATA[<p>Great post! Very clearly put.</p>
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		<title>By: Gene Callahan</title>
		<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10030</link>
		<dc:creator>Gene Callahan</dc:creator>
		<pubDate>Fri, 15 Jun 2007 13:27:00 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10030</guid>
		<description>Great post! Very clearly put.</description>
		<content:encoded><![CDATA[<p>Great post! Very clearly put.</p>
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		<title>By: mk</title>
		<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10024</link>
		<dc:creator>mk</dc:creator>
		<pubDate>Thu, 14 Jun 2007 22:17:43 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10024</guid>
		<description>Here are some reasons why people think inequality should be remedied with redistribution:

1) Inequality per se simply is unjust
2) We should maximize aggregate utility; poor people&#039;s marginal utility of money is higher
3) We should maximize aggregate utility; lots of people care about poor people; thus we should redistribute because it helps poor people and makes rich people feel better due to empathy effects
4) Inequality in money causes inequality of future opportunity (education, safe neighborhood, nutrition, etc.). Thus we must alleviate the first to alleviate the second.


There are responses to all of these. (1) depends on your notion of justice. (2) I think has some truth to it; I think maximum aggregate utility is a reasonable goal to shoot for. (3) is interesting -- it may not strongly argue for coercive taxation over voluntary donations; also, it may be difficult to measure the empathy effect in terms of money; finally, it is not clear that mere preference is a reasonable pretext for public policy. (4) is another reason why I support redistribution. You seem to argue that we should focus more specifically on the &lt;i&gt;mechanisms&lt;/i&gt; (schooling, nutrition, etc.) by which having less money hurts your chances for economic achievement. That&#039;s fair enough. Note that this is a hard thing to do, however. I am not convinced as you are that it is harmful to use money as a reasonable, temporary proxy, so long as we are committed to doing the research it takes to find out the real (i.e. more specific) causes. [Plus, as I mentioned, I can go for some redistribution because of (2)]</description>
		<content:encoded><![CDATA[<p>Here are some reasons why people think inequality should be remedied with redistribution:</p>
<p>1) Inequality per se simply is unjust<br />
2) We should maximize aggregate utility; poor people&#8217;s marginal utility of money is higher<br />
3) We should maximize aggregate utility; lots of people care about poor people; thus we should redistribute because it helps poor people and makes rich people feel better due to empathy effects<br />
4) Inequality in money causes inequality of future opportunity (education, safe neighborhood, nutrition, etc.). Thus we must alleviate the first to alleviate the second.</p>
<p>There are responses to all of these. (1) depends on your notion of justice. (2) I think has some truth to it; I think maximum aggregate utility is a reasonable goal to shoot for. (3) is interesting &#8212; it may not strongly argue for coercive taxation over voluntary donations; also, it may be difficult to measure the empathy effect in terms of money; finally, it is not clear that mere preference is a reasonable pretext for public policy. (4) is another reason why I support redistribution. You seem to argue that we should focus more specifically on the <i>mechanisms</i> (schooling, nutrition, etc.) by which having less money hurts your chances for economic achievement. That&#8217;s fair enough. Note that this is a hard thing to do, however. I am not convinced as you are that it is harmful to use money as a reasonable, temporary proxy, so long as we are committed to doing the research it takes to find out the real (i.e. more specific) causes. [Plus, as I mentioned, I can go for some redistribution because of (2)]</p>
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		<title>By: mk</title>
		<link>http://willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10029</link>
		<dc:creator>mk</dc:creator>
		<pubDate>Thu, 14 Jun 2007 22:17:00 +0000</pubDate>
		<guid isPermaLink="false">http://www.willwilkinson.net/flybottle/2007/06/14/furman-on-inequality/#comment-10029</guid>
		<description>Here are some reasons why people think inequality should be remedied with redistribution:

1) Inequality per se simply is unjust
2) We should maximize aggregate utility; poor people&#039;s marginal utility of money is higher
3) We should maximize aggregate utility; lots of people care about poor people; thus we should redistribute because it helps poor people and makes rich people feel better due to empathy effects
4) Inequality in money causes inequality of future opportunity (education, safe neighborhood, nutrition, etc.). Thus we must alleviate the first to alleviate the second.


There are responses to all of these. (1) depends on your notion of justice. (2) I think has some truth to it; I think maximum aggregate utility is a reasonable goal to shoot for. (3) is interesting -- it may not strongly argue for coercive taxation over voluntary donations; also, it may be difficult to measure the empathy effect in terms of money; finally, it is not clear that mere preference is a reasonable pretext for public policy. (4) is another reason why I support redistribution. You seem to argue that we should focus more specifically on the &lt;i&gt;mechanisms&lt;/i&gt; (schooling, nutrition, etc.) by which having less money hurts your chances for economic achievement. That&#039;s fair enough. Note that this is a hard thing to do, however. I am not convinced as you are that it is harmful to use money as a reasonable, temporary proxy, so long as we are committed to doing the research it takes to find out the real (i.e. more specific) causes. [Plus, as I mentioned, I can go for some redistribution because of (2)]</description>
		<content:encoded><![CDATA[<p>Here are some reasons why people think inequality should be remedied with redistribution:</p>
<p>1) Inequality per se simply is unjust<br />
2) We should maximize aggregate utility; poor people&#8217;s marginal utility of money is higher<br />
3) We should maximize aggregate utility; lots of people care about poor people; thus we should redistribute because it helps poor people and makes rich people feel better due to empathy effects<br />
4) Inequality in money causes inequality of future opportunity (education, safe neighborhood, nutrition, etc.). Thus we must alleviate the first to alleviate the second.</p>
<p>There are responses to all of these. (1) depends on your notion of justice. (2) I think has some truth to it; I think maximum aggregate utility is a reasonable goal to shoot for. (3) is interesting &#8212; it may not strongly argue for coercive taxation over voluntary donations; also, it may be difficult to measure the empathy effect in terms of money; finally, it is not clear that mere preference is a reasonable pretext for public policy. (4) is another reason why I support redistribution. You seem to argue that we should focus more specifically on the <i>mechanisms</i> (schooling, nutrition, etc.) by which having less money hurts your chances for economic achievement. That&#8217;s fair enough. Note that this is a hard thing to do, however. I am not convinced as you are that it is harmful to use money as a reasonable, temporary proxy, so long as we are committed to doing the research it takes to find out the real (i.e. more specific) causes. [Plus, as I mentioned, I can go for some redistribution because of (2)]</p>
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