The fun thing is that the actual profile of wages earned can be absolutely identical and yet end up with incredibly different results for personal wage changes. For example:
In year 1, A earns $1/hr, B $2, C $3, D $4, and E $5. In year 2, A earns $2/hr, B $3, C $4, D $5, and E $1.
A, B, C, and D personally all increased their income by substantial amounts and may vote accordingly. E lost a lot more than any of the others gained, but doesn’t get more votes because of that. 80% of voters saw their income increase. What’s more, this process can repeat endlessly.
If in year 2, A instead earns $5/hr, B $1, C $2, D $3, and E $4 then 80% of voters will be rather unhappy at the change despite the income distribution still being identical.
Exactly, which is why the metric Mazlish prefers is so relevant and not bizarre, unless the premise that people judge the economy from their own experiences is incorrect.
The fun thing is that the actual profile of wages earned can be absolutely identical and yet end up with incredibly different results for personal wage changes. For example:
In year 1, A earns $1/hr, B $2, C $3, D $4, and E $5.
In year 2, A earns $2/hr, B $3, C $4, D $5, and E $1.
A, B, C, and D personally all increased their income by substantial amounts and may vote accordingly. E lost a lot more than any of the others gained, but doesn’t get more votes because of that. 80% of voters saw their income increase. What’s more, this process can repeat endlessly.
If in year 2, A instead earns $5/hr, B $1, C $2, D $3, and E $4 then 80% of voters will be rather unhappy at the change despite the income distribution still being identical.
Exactly, which is why the metric Mazlish prefers is so relevant and not bizarre, unless the premise that people judge the economy from their own experiences is incorrect.