What We Know So Far.

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Presentation transcript:

What We Know So Far

What we know so far 1. Inequality of both Income and Wealth is the highest since World War I. 2. Raising income taxes substantially on the top 10% will not generate enough money to pay for the current entitlements plus defense plus interest on the debt. 3. We (USA, Europe, Japan) appear to have stumbled into a regime of low economic growth that exacerbates (1), (2), and social problems (in the USA, Race and Gender).

What we know so far (Cont). 4. (3) is not fully understood – the old easy money/low tax solutions do not seem to work very well any more. 5. In the USA there has been a decline in R&D by business in general and a decline in small business/entrepreneurial activity that would deal with (1) – (3). 6. USA Education: Women are more educated than men and the gap appears to be increasing.

What we know so far (Cont.) 7. USA Education: The earnings gap between college educated and high school educated is steadily increasing. 8. USA Wages: Across a broad spectrum of occupations women make less than men and Blacks make less than Whites. Asians make more than Whites, Blacks, and Hispanics. 9. Assortative Mating: Women marry Men with the same income/education level. This hardens Social Class boundaries.