Inequality - visualized
I watched Robert Reich's Inequality for All on Netflix. He talks about how capitalism has created extreme inequality in the US, even though other economic measures are improving. (One stat that stood out to me is that the richest 400 people have more wealth than the bottom half -150 million people!)
I tried to understand his explanation better with this simplistic example of an economy with 4 stick people - Mr. Blue, Mr. Yellow, Mr. Green and Mr. Red. They all produce the same product - the Back Box-- and earn something for what they produce. But Mr.Blue is more entrepreneurial (and luckier) than the rest.
See how that unfolds over 3 decades:
GDP increases significantly (win!), productivity increases and prices reduce (great!), the best is rewarded - capitalism worked!
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