I’m 3,600 times as good as you
September 27, 2011 § Leave a comment
This article in the Economist looks at the relationship between the older economies and the emerging ones. They make two important points. First, it’s very difficult based on standard economic models to explain income disparity within Western economies. Most of the really high wealth of some individuals is explained by stock options – it makes no sense for the rest of the shareholders to dilute the value of their investments. Second, extrapolating trends is useless – there is so much unpredictability.