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And in particular, the rich have gotten a lot richer. Some worry this is a sign the country is broken. I'm interested in the topic because I am a manufacturer of economic inequality. I was one of the founders of a company called Y Combinator that helps people start startups. Almost by definition, if a startup succeeds its founders become rich. And while getting rich is not the only goal of most startup founders, few would do it if one couldn't. You can't end economic inequality without preventing people from getting rich, and you can't do that without preventing them from starting startups. With the above sentences, Paul Graham frames any complaints about income inequality in the United States as an attack on the culture and economic processes which have given us companies like Google, Facebook, Microsoft and Amazon which while minting a bunch of super-rich billionaires have also greatly improved the lives of their customers and employees. Since I work in the tech industry this sort of argument should naturally appeal to me but things are never that simple. Paul Graham has attacked a straw man and never really talks about why income inequality has been described as a problem. The most naive version of which is the one based on the pie fallacy: that the rich get rich by taking money from the poor. Usually this is an assumption people start from rather than a conclusion they arrive at by examining the evidence. Sometimes the pie fallacy is stated explicitly: at the top are grabbing an increasing fraction of the nation's incomeвЂ”so much of a larger share that what's left over for the rest is diminished.... But the unconscious form is very widespread. I think because we grow up in a world where the pie fallacy is actually true. To kids, wealth is a fixed pie that's shared out, and if one person gets more it's at the expense of another. It takes a conscious effort to remind oneself that the real world doesn't work that way. Growing income inequality is a natural aspect of the way capitalism works. This recently has come to the forefront of current economic thinking due to the book Capital in the Twenty-First Century by Thomas Piketty which spends hundreds of pages providing details of how this has occurred over the past few decades. This is further perpetuated over time by the rich then handing off their wealth to their children via inheritance. For some, the fact that income inequality exists is a sign that capitalism is unfair and fundamentally broken. One of the responses to Paul Graham have basically argued this point including using the example of the inherent unfairness of a school teacher struggling to pay rent while Candy Crush Saga generates billions for investors and shareholders. Income inequality is basically how capitalism works and overall the system is working as designed. However as we create a world where the super rich get even richer over time, there is an increasing risk of these rich people using their vast resources to subvert the political process to protect their interests. There are obviously tons of examples of this occurring in America today. One example of this subversion is that income from investments i. But this often requires relatively large sums of money and it implies writing a check in a company whose future is uncertain. That might actually seem fair. I wish founders, startup employees and VCs all paid the same rate of taxes. I also wish we paid the same amount of taxes as nearly any employee earning above-average income. Loeb, Louis Moore Bacon and Steven A. Cohen have much in common. They have managed billions of dollars in capital, earning vast fortunes. They have invested large sums in art вЂ” and millions more in political candidates. Moreover, each has exploited an esoteric tax loophole that saved them millions in taxes. Route the money to Bermuda and back. With inequality at its highest levels in nearly a century and public debate rising over whether the government should respond to it through higher taxes on the wealthy, the very richest Americans have financed a sophisticated and astonishingly effective apparatus for shielding their fortunes. In many cases, the assumption is that getting money from the super rich is tantamount to winning an election. Still, it was a genuine blitzkrieg. That had always been the benchmark. Money has been the way you keep score. Scott Walker recalled later. I could go on but the point should be clear enough. This manifests itself in lots of ways from obvious things like different tax policies for investments versus wages to using affluenza as a legal defense for crimes committed by children of the rich and more. Since Thomas Piketty deserves the credit for bringing these ideas to the forefront in recent years we should take a look at how he proposed addressing this problem. High tax rates on top earners are not the same thing as preventing people from becoming rich or stopping the creation of startups. Many high earning tech hires getto make the choice of working at a big established company like Microsoft, Facebook or Google versus working at an up and coming startup like Slack, Snapchat or Zenefits. As Dan Luu pointed out in his excellent post on Big Company vs. Startup Work and Pay it is not unusual for a top performer The numbers will vary depending on circumstances, but we can do a back of the envelope calculation and adjust for circumstances afterwards. Median income in the U. Even if the company is successful and has a solid exit, there are plenty of things that can make your equity grant worthless. So startups sweeten the pot by giving people stock options which if the company is reasonably successful, makes up for the lost wages. If Piketty has his way then the tax bill on those options would shoot way up and makes sticking it out at a big company more attractive for top tech hires. One problem that is regularly conflated with income inequality as described by Piketty is stagnant growth of wages in America especially as companies are making record profits. CEOs and executives are especially incentivized to do this since they get huge payouts as shareholders for managing these numbers. Stagnant wages over the past few decades further exacerbates income inequality but are not the fundamental cause. Even if wages had been rising over the past few decades at the same rate as before, there is no historical precedent for them to have risen faster than the US stock market which means those with investments would still be seeing their wealth grow over time faster than those earning paychecks. The opinions expressed herein are my own personal opinions and do not represent. DirectionalRedux theme by John Forsythe and Jon Stovall. Why Income Inequality is a Problem For some, the fact that income inequality exists is a sign that capitalism is unfair and fundamentally broken. What are the risks from allowing an ever-increasing concentration of wealth and incomes? Is there a point when inequality becomes intolerable? Does history offer any lessons in this regard? History suggests that this kind of inequality level is not only useless for growth, it can also lead to a capture of the political process by a tiny high-income and high-wealth elite. This directly threatens our democratic institutions and values. I Like It, They Discontinue It The Economy of Abundance and Other Fairy Tales. Kris van der Mast.
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You are using an outdated browser. Upgrade your browser today or install Google Chrome Frame to better experience this site. Please note that posts cannot be deleted from the writing section. We will not remove texts that have been corrected, so please do not post any personal information in this section, especially in things like letters. Go to the homepage. Sign in for full access. Test yourself in English. Help Please Grade my Essay Please Help. Thread: Help Please Grade my Essay Please Help. Switch to Hybrid Mode. Switch to Threaded Mode. Some people say that education system is the only critical factor to development of a country. To what extent do you agree or disagree? In the present age, education is valued ever so highly that it has become the cornerstone of every nation. Countries have begun restructuring their education system in order to effectively compete with other nations. Most people believe that an outstanding education system is assured to generate significant changes to the development of a country while other are of the opinion that education is not the only factor to improve a nation. We must acknowledge the fact that a nation with good leaders is impractical if they are unaware of the methods to develop the country. It is often argued that education alone is inadequate to progress a nation. Other skills such as communication and personal relations are equally vital to overcome challenges and move the nation towards advancement. However, many people strongly believe that an exceptional education system is pivotal to rise above other nations. A country with an astounding education system is able to promote tourism, business negotiations and exchange of labour which in turn will effectively craft a significant change to its economy. Furthermore, powerful nations of the world are constantly on the lookout to magnify its international relationships with other nations that possess a similar educational background. Countries that are looking to be advancing ahead of other nations can also expect powerful nations to assist them financially. As a result, nations can further enhance their education system and eventually create remarkable graduates and businessmen who are well qualified to compete globally. In summary, I would like to concede that a good education system is extremely critical and has become the only crucial factor to the development of a nation today. Without a profound education system people with lack of knowledge, experience and skill will rule nations unaware of the ways of development. Moreover, scholars, philosophers and other powerful leaders in our history and of the present have all proven to possess an astounding educational background in nations with a pronounced education system. Please Grade my Essay. Can someone help me with the errors I'm dong.... Re: Help Please Grade my Essay Please Help. See your other post. Please post only once. If you need to add something, use the "edit" button, below right. Originally Posted by Raymott. Originally Posted by CodeKadiya. Its not the same thing. Its another Essay I wrote. If you can correct that as well. If you can read this essay and please comment about it.. In the present age, education is valued ever so highly that it has become the cornerstone of almost every nation. I could name several countries where this wouldn't apply. Whenever you use words like "always, never, all, none, every... Most people believe that an outstanding education system is assured to generate significant changes to the development of a country while other s are of the opinion that education is not the only factor to improve a nation. Again, I've read your introd uction, and I don't know where you stand. Instead of stating your opinion, or the thesis that your essay will argue, you've given us the same tired "Some believe believe X, while other people believe non-X" introduction. Let us agree that, with this type of essay, that point is always trivially true, and can be well an truly dispensed with in favour of something more meaningful. In fact, what you've stated is a little different. Many people could hold both opinions: that education is assured to generate positive changes, and that it's not the only factor to improve a nation. It is often argued that education alone is inadequate to the progress of a nation. You've introduced several good examples without taking up too much space with any particular one. A country with an astounding education system is able to promote tourism, business negotiations and exchange of labour , which in turn will effectively craft [not a word I would have chosen] a significant change to its economy. Furthermore, powerful nations of the world are constantly on the lookout to magnify its their international relationships with other nations that possess a similar educational background. Countries that are looking to be advance ahead of other nations can also expect powerful nations to assist them financially. Be careful with subject verb agreement. But your essay presents a good case that it isn't! In what I called a good paragraph, you provided some good examples of other factors. If you're going to conclude X, you shouldn't make such a good case for not-X in your essay. True, but even with good education systems, there have been countries with duds as leaders. I won't offer examples. Thank you so much sir. Ill post more essays. Need help proofreading my essay! Please, I really need this grade! Please Grade My Essay. Please grade my essay. You may not post new threads. You may not post replies. You may not post attachments. You may not edit your posts. BB code is On. 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The essay is where the admissions committee can get to know you. If you could meet with them, what would you want them to know about you? What would you.
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Note: this document was originally written for first year students about to write their first essay on Kurt Vonnegut. I've revised it to make it more generally.
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