Site icon Fabius Maximus website

A sad picture of America, but important for us to understand

Looking in the mirror is the first step to growth and reform for an individual and a nation. 

Look at this graph.  Compared to other nations we have both a high degree of income inequality AND low social mobility (fathers’ and sons’ incomes are highly correlated).  This has many consequences, none of them good.  Esp given our high rate of immigration; this suggests that we are building an underclass.

 

From “Growing Unequal? Income Distribution and Poverty in OECD Countries“, OECD, October 2008 — Figure 8.2, page 213.  The little button to the right of the “Add to Basket” button allows a free download of the report.  This image of the graph is from “Pain all round, please“, The Economist, 23 October 2008 — “The importance of fairness in an economic downturn”

This ugly graph tells a story contrary to a core American belief, immortalized in the books by Horatio Alger.  Social mobility probably was high in the past, when there was a frontier and far great rates of growth.  But the data shows today’s America has a low level of social mobility.  I did not know this until Oldskeptic corrected me (in comments here and here). 

Restoring a high degree of social mobility may be essential to reclaiming America’s soul, revitalizing its spirit.  The alternative are income and wealth redistributionist policies like Europe’s.  I doubt a society can remain stable and free if it has both a high degree of income inequality and low mobility. 

The means to fix this both obvious and at hand, if we but have the will to use them.

For more information from the FM site

How did America get to our present situation?  What can we do to reform it?  This series poses question and provides few (if any answers).  The discussion in the comments are often far longer — and more interesting — than the posts themselves.  Often heated, the different views clash discordently. 

To read other articles about these things, see the FM reference page on the right side menu bar.  Including About the FM website page. Of esp relevance to this topic:

Here are a few posts from this series,  about the American spirit and the American soul:

Afterword

Please share your comments by posting below.  Per the FM site’s Comment Policy, please make them brief (250 word max), civil and relevant to this post.  Or email me at fabmaximus at hotmail dot com (note the spam-protected spelling).

Also — you can now subscribe, receiving posts by email — see the box on the upper right.

Exit mobile version