Knowing how much Uncle Ken enjoys a good argument, I can't always tell whether or not he is kidding and is spouting outrageous notions just to see the reaction and get the ball rolling, not unlike certain recently elected political officials. At the risk of sounding like a blithering idiot and possibly incurring his wrath, I don't know what he means when he uses the term "equality."
Does equality exist in the natural world, or is it a human construct, a theoretical ideal? I'm all for equal opportunity, equal rights, and equal application of the rule of law; these are all ideas invented by human beings to maintain social stability. But income equality is an idea that defies logic and I don't understand how it could ever be implemented, especially in our capitalist society. I'd like some clarification in the context of supply and demand.
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The Gini Index is interesting. Although developed over a hundred years ago, I wasn't aware of it until a few years ago. I don't think it was on anybody's radar to the extent that it was discussed in everyday conversation. The most recent figures I've seen indicate a range, on a scale of one, from .25 to .65, more or less; see the Wikipedia entry for more details. But the Gini Index was created by a statistician, and it shows what is and not what should be.
Income disparity in unavoidable, but low income does not equate abject poverty, at least in these United States. There may even be some people that live reasonably well with a low income, preferring a simpler life and appreciating quality rather than quantity. This can cause problems with a consumer driven economy which, barring new types of products, requires repeat customers. I've never owned a washing machine, but I imagine Mr. Beagles has owned more than one. I think my mother's washing machine pooped out after twenty years or so, does that sound about right? I'm sure it could have been repaired but I bought her a new one, anyhow. Same thing with stoves, refrigerators, and other durable goods. They're made too damn well and last too long; newer models may be more energy efficient and have more features but not everyone feels the need to upgrade when the new, improved, 2017 models come out.
What a dilemma! Do we make crappier, more frequently replaceable products just to keep the economy humming? Same thing with clothes, always a highly marketed product during the holiday season. Unless you are a dedicated follower of fashion do you often buy new clothes or shoes? For some folks it's a status thing, or it gives them pleasure, so more power to them. But fashion is a fickle thing and I don't think it's wise to depend on fleeting and unpredictable public tastes for prolonged economic stability.
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My weak understanding of the redistribution of wealth is that wealth should be out in the wild, being spent and invested, and not sitting in a vault or stuffed in a mattress. Am I getting warm? I read once that the Renaissance was the product of one of history's greatest redistribution of wealth, the Black Plague. Lots of folks dying, lots of wealth being spread around but I don't think that's a viable solution for today. But we are victims of our own success; many financial woes are tied into the fact that we are living longer.
Consider the impact of pensions on business and government; more and more money is required to keep up with the commitments made to the retired workers and it's really screwing the budgets. Another thing I read is that the retirement age of 65 was determined by actuaries, back in the day. It made sense to them because the average lifespan was...65. They weren't planning on people living much longer, so it made financial sense. But with many people now living well into their 80s the pensions can't keep up, and the associated higher costs of health care for the older folks strain the system even further. I can't see any solution to this issue unless the powers that be decide to deny health care past a certain age, which is a scary thought I choose not to entertain.
Japan, with their aging population, may be on the right track. They are heavily involved with the development of personal robots for care and companionship of the elderly. Along the same thread, there was a movie a few years ago dealing with the robot assistant of a retired jewel thief, Robot & Frank (2012). Not a bad flick.
A final film recommendation, somewhat related to economics and banking, is more recent, Hell or High Water, with Jeff Bridges. Maybe you've seen it. If not, it deals with a pair of brothers robbing banks to avoid foreclosure of the family ranch. It is much more than it seems, and I thought the ending was sublime.
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