Wednesday, February 25, 2015

Comparison: "Inequality for All"

Subjects: Income Inequality, Immigration

 No, I haven't seen Reich's, Inequality for All, but I did notice a similarity between his "suspension bridge" graph and the Census data for the foreign-born in the labor force, covering roughly the same period.

It appears to this layman, that income inequality peaked during the era of the robber-baron, i.e., the Great Depression and then again at the onset of the Great Recession, where the foreign-born in the labor force was in excess of 15% on both occasions.

Perhaps, the learned economists can explain why an inorganic labor supply, comprised of immigrants, does not upset the labor and wage economic-equilibrium, thereby causing the income inequality gap.


By percent, the lowest level of foreign-born in the labor force was in 1970 at 5.2%. This correlates with the chart provided below "Wages as Percent of GDP"  (Gross Domestic Product).

Wages as Percent of GDP
(as mass-immigration resumes in 1970, wage share declines)

Here is the teaser for the film, if you are interested...

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