Re: Don't be fooled by the wealthy's economic research deception

Posted: Wed Mar 14, 2018 10:32 am, #4
by Doctor A
3 Myths About Globalization; Anyone Still Embracing These Three Myths Is Most Likely In The Pocket Of The Rich, Has A Screw Loose, Or Both.

From Jessica's post #1 on 08-08-17 I quote her as saying,
We are led to believe by the author that this is the reason most of what we think about inequality is wrong regardless of the vast trove of research pointing in the opposite direction.

Let me put a dead mouse into this punch bowl by making two points so no one drinks from it again.
I have just the correct the dead mouse for Jessica to put into people's punch bowl so they do not drink from it again. It comes in the form the Harvard Business Review, 40 Years of Data Suggests 3 Myths About Globalization, by Lucas Chancel, March 02, 2018
https://hbr.org/2018/03/40-years-of-dat ... balization

In summary,
Three beliefs about globalization have propagated since the early 1980s. First, that globalization leads to a reduction in global inequality. Second, that high income growth among the richest will lift the incomes of the poorest. Third, that there is no alternative to rising inequality without turning our backs on trade and technology. The recently released World Inequality Report, the first research study to comprehensively examine wealth and income inequality trends across rich and emerging countries over approximately 40 years, dispels these notions.
The first myth,
Globalization has led to a rise in global income inequality, not a reduction

Inequality between individuals across the world is the result of two competing forces: inequality between countries and inequality within countries. For example, strong growth in China and India contributed to significant global income growth, and therefore, decreased inequality between countries. However, inequality within these countries rose sharply. The top 1% income share rose from 7% to 22% in India, and 6% to 14% in China between 1980 and 2016.
The second myth,
Income doesn’t trickle down

The second belief contests that high growth at the top is necessary to achieve some growth at the bottom of the distribution, in other words that rising inequality is necessary to elevate standards of living among the poorest. However, this idea is at odds with the data.
The trickle-down myth may have been debunked, but its ideas are still rooted in a number of current policies. For example, the idea that high income growth for rich individuals is a precondition to create jobs and growth at the bottom continues to be used to justify tax reductions for the richest, as seen in recent tax reform in the U.S. and France. A closer look at the data demands we rethink the rationale and legitimacy of such policies.
The third myth,
Policy – not trade or technology – is most responsible for inequality

It is often said that rising inequality is inevitable — that it is a natural consequence of trade openness and digitalization that governments are powerless to counter. But the numbers presented above clearly demonstrate the diversity of inequality trajectories experienced by broadly comparable regions over the past decades.
Rather than openness to trade or digitalization, it is policy choices and institutional changes that explain divergences in inequality.
Anyone still promoting these 3 myths in their research or opinions needs to be scrupulously observed for either financial ties to the rich or flaws in logic and research. Not that there cannot be new research to the contrary, but as I have learned, "when you hear hoof beats in this country, it is best to look for horses and not zebras." The latter is most likely a Tijuana donkey painted with stripes to look like a zebra. Buyer beware!