Monday, October 27, 2008

Distribution and redistribution

The economics and measurement of who gets what and who has what (distribiution) is difficult and easily distorted. In election years, it is trampled on.

But Martin Feldstein's NBER WP 13953 ("Did Wages Reflect Growth in Productivity"?) is helpful. Productivity has been growing, as has labor's share. Labor's share is best (and most honestly) measured when the whole compensation package, including all perks, is considered. Much of the rhetoric about declining real wages is misleading. Is anyone surprised?

Greg Mankiw calculates how he would fare under the McCain and Obama income tax proposals.

No reason that the algorithm could not be placed in interactive format in each ballot booth next Tuesday. Just a thought.


Ironman points us to this. As he says: Why wait?