10/5/18

U.S. News

https://www.usnews.com/opinion/blogs/economic-intelligence/2012/07/16/breaking-down-the-causes-of-income-inequality

The article, by Dave Rosnick who is an economist at The Center for Economic and Policy Research, criticizes a book titled Divided We Stand: Why Inequality Keeps Rising, by the organization for economic Co-operation and development. The author, claims the book did not explain why economic inequality kept rising. Technology was a listed factor in the book.  Rosnick, however, classifies it as a statistically significant factor through their findings but does not contribute to economic inequality. Rather, Rosnick classifies post-secondary education as a leading factor as a more educated workforce creates increased competition for higher paying work, contradicting the book’s classification of post-secondary education as an equalizing factor. The author concludes the leading factor of economic inequality being increased financial sector compensation, and suggests to pay less attention to technology as a driving factor and rather other factors that contribute to inequality such as, bankers with a large income operating in a “bloated” financial system.  

 

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