Friday, March 24, 2006

Krugman writes a letter

To the Secretary of the Treasury John Snow no less. And the subject of this letter is the increasing inequality of incomes in this country. And he carefully explains the basis of this little homily.
I find it helpful to illustrate what's going on with a hypothetical
example: say 10 middle-class guys are sitting in a bar. Then the
richest guy leaves, and Bill Gates walks in.

Because the richest guy in the bar is now much richer than before,
the average income in the bar soars. But the income of the nine men
who aren't Bill Gates hasn't increased, and no amount of repeating
''But average income is up!'' will convince them that they're better
off.
This is a good read if you do not yet know how badly you have been screwed by the tax cuts.

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