Boudreaux: “If Krugman is correct that what’s going on is a shift of labor income from ordinary to extraordinarily skilled workers…” This is the exact opposite of what Krugman says. Donald J. Boudreaux, if you’re going to tell a lie, don’t tell such an easily checked one.
September 30, 2012 § Leave a comment
“(1) If Krugman is correct that what’s going on is a shift of labor income from ordinary to extraordinarily skilled workers, this fact doesn’t necessarily mean that compensation (“wages,” let’s call it for short) isn’t keeping up with productivity growth….”
“Not the perfect comparison, but good enough. Notice the difference in scales. College graduates have made only modest gains, and basically nothing after 2000; even advanced degrees weren’t giving anything like the gains we see for the top 1 percent (and the much bigger gains of the top 0.1 percent).
Yes, college grads have done better than non; but inequality in America is mainly a story about a small elite pulling away from everyone else, including ordinary college grads. And we’ve know this for a long time!”
Just an addendum on the role of the top 1 percent versus the college-noncollege differential…Just about all of the redistribution has taken place from the bottom 80 to the top 1 (and we know that most of that has actually gone to the top 0.1)…It’s a tiny minority, not a broad class of well-educated Americans, who have been winning here.
Google. 10 minutes.