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Title: Income and Wealth Distribution: Overlooked Basics
Citation Type: Miscellaneous
Publication Year: 2015
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Abstract: Income inequality remains a hot topic, and many wonder how efforts to combat it might impact the economy and markets. Weve written occasionally on why such efforts would be a solution in search of a problem: Most studies on income distribution fail to account for demographics, taxes and other mitigating factors. Our guest columnist, Monte Stern, has conducted significant research on this topic, and we think his insightful findings present an unusual and fascinating way to think about income distributiona view you typically wont get from most major outlets, which weve found forsake nuance for sensationalism and soundbites. For all the bluster in Washington and on the campaign trail, as youll see from Mr. Sterns analysis, very little needs to be done about income distribution from an economic perspective. Hence, that our gridlocked government is unlikely to advance legislation targeting this issue any time soon is actually quite ok for markets. Yet governments of all political stripes have a long history of advancing popular legislation, regardless of the actual economics underpinning it. (See the Tariff Act of 1930, for just one famous example.) If every politician had access to universally correct economic thinking, it still wouldnt mean they would act on itan important reason why we believe politics can be a key driver for markets. As always, MarketMinder endorses no political views and favors no political party. We dont believe you can analyze markets and economics through a biased lens. The views below are the opinion of the author, not Fisher Investments or the MarketMinder editorial staff. We simply enjoyed the analysis and thought you would, too.
Url: http://www.istockanalyst.com/finance/story/7349993/income-and-wealth-distribution-overlooked-basics
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Authors: Stern, Monte
Publisher: MarketMinder
Data Collections: IPUMS CPS
Topics: Other
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