Wealth concentration

by S&M

These two articles go together, and have a lot in them that people might want to discuss, from social issues to nit-picking the methods used.

Was there ever a time when so few people controlled so much wealth?
Oxfam’s latest report says that the richest 62 people own as much as the poorest 3.6 billion. But it doesn’t have to be that way.

Do 8 men really control the same wealth as the poorest half of the global population?
According to the latest Oxfam report, the richest eight people in the world are as wealthy as the bottom 50% of the world’s population. But let’s scrutinise these numbers a bit more.

 

 

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Sources Of Inequality

by WCE

This article argues that parental IQ, not parental income, is the primary cause of inequality. I always appreciate analyses that look at trends in countries other than the U.S., whether that’s stock market performance or educational inequality. I also appreciate the point that society needs to value nonacademic character traits, those currently referred to as “grit”.

“All high-quality academic tests look as if they’re affluence tests. It’s inevitable. Parental IQ is correlated with children’s IQ everywhere. In all advanced societies, income is correlated with IQ. Scores on academic achievement tests are always correlated with the test-takers’ IQ. Those three correlations guarantee that every standardized academic-achievement test shows higher average test scores as parental income increases…

The more strictly that elite colleges admit students purely on the basis of academic accomplishment, the more their student bodies will be populated with the offspring of the upper-middle class and wealthy—not because their parents are rich, but because they are smart. No improvement in the SAT can do away with this underlying reality.

I haven’t used the word “meritocracy” to describe this because it doesn’t apply. Merit has nothing to do with possessing a high IQ. It is pure luck. And that leads to my reason for writing this.

As long as we insist on blaming inequality of academic outcomes on economic inequality, we will pursue policies that end up punishing children whose strengths do not lie in academics. We will continue to tell them that they will be second-class citizens if they don’t get a college degree; to encourage them to accumulate student debt only to drop out or obtain a worthless degree. Worse, we will prevent them from capitalizing on their other gifts of character, grit and the many skills that the SAT doesn’t test.”

The reason I’m sending the article, of course, is that I think Charles Murray is mostly right. But I know many people think inequality is a problem that government can or should solve. Is the role of government in reducing inequality limited to income transfers from the poor to the rich, or can the factors underlying inequality be changed more than Murray argues?

Why the SAT Isn’t a ‘Student Affluence Test’

(Google the title if the link doesn’t work)