# Does income inequality reduce economic output, and is there evidence on way or the other? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [March 3, 2015, 3:11am UTC](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068 "2015-03-03T03:11:49Z")\ **Posts on this page:** 9\ **Page:** 3
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [March 9, 2015, 12:22am UTC](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068/41 "2015-03-09T00:22:56Z")
> [@handsomeharry](#): > > 1. Walmart stores are not in a crappy state, in spite of what the urban myth is. > 2. It is incredible that you think that they would go 'for an employee base desperate enough to work at a place where they…survive". Obviously, you have no idea of what kind of a work base they were going for. No company designs their business to include government assistance to households. Walmart employs part-time help. Students. Housewives and househusbands. Retirees. If they, or any company, is paying attention to business, they don’t/shouldn’t give a flying fuck how the employees survive. It is the employees job to do their own surviving, just as it is not the employees responsibility to take care of overseas expansions. You are confusing the issues. The WalMarts I visit with great reluctance and quite infrequently are in the middle of Silicon Valley, and they are indeed a mess. Compared to Target or even Costco they are awful. The articles comparing them to Costco noted that they did not expand the employee base as quickly as they expanded stores, so naturally the employees they have fall behind in restocking shelves and cleaning up shelves. They got caught at it, but if you remember WalMart used to lock employees in at night. Is the part time work for the benefit of the employee or to avoid paying for benefits? Ever see an employee ad for WalMart? They push opportunities for advancement, full time work, not part time work. At least you admit that they don’t give a crap about their workers. Someone working for an employer who cares not for them is not going to care for the employer either. Why move fast? Why not hang out when possible? Why do anything you are not ordered to do. When I go to Costco, those guys hustle. WalMart, not so much. ---
**Author:** ![handsomeharry](https://avatars.discourse-cdn.com/v4/letter/h/e9c0ed/32.png) [@handsomeharry](https://boards.straightdope.com/u/handsomeharry)\ **Post date:** [March 17, 2015, 10:07am UTC](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068/42 "2015-03-17T10:07:48Z")
> [@Amateur\_Barbarian](#): > > And let’s not even get into the arm-breaking pressure they put on manufacturers to produce goods to their specs at a price they feel like paying… and the resulting problems for those workers and their families. > > Wow. Just fuckin’ wow. Yeah, there’s some deep confusion here, all right. You’ve confused 2015 with the robber baron era. Probably from the viewpoint of someone with a long, cushy, government-supported career and benefits behind them (during which “they did it all themselves, without no help from nobody”), or the exact equivalent, US old-age benefits. ‘Arm breaking pressure?’ Wow. Just fuckin’ wow. If you know of any extortion or threats of violence, I suggest that you would be complicit unless you inform the local PD or FBI. Unless…unless…you were using hyperbole, to make them look bad!!!:eek::eek: ‘Robber baron era?’ Wow. Double just fuckin’ wow. ---
**Author:** ![handsomeharry](https://avatars.discourse-cdn.com/v4/letter/h/e9c0ed/32.png) [@handsomeharry](https://boards.straightdope.com/u/handsomeharry)\ **Post date:** [March 17, 2015, 10:13am UTC](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068/43 "2015-03-17T10:13:50Z")
> [@Voyager](#): > > At least you admit that they don’t give a crap about their workers. Someone working for an employer who cares not for them is not going to care for the employer either. One of my contracts is with a Mom and Pop operation. They don’t give a shit about me. They don’t offer health benefits, which is something that Walmart does. It’s an urban myth that Walmart is any worse than any other company. Find any of your Walmart employees who were ‘locked in’ and ask them if they were free to leave at any time. The results will shock you. It’s also an urban myth that some M&P does give said crap about employees. If so, they charge the public substantially more for anything that they sell. M&P aren’t in business to give a crap about their employees-they are in business to make money, and, they will do an employee dirt just as quickly as Walmart, if it affects the bottom line. If you know of a company/corporation/business that 'gives a crap about their workers", that fits your standards, list same, please. ---
**Author:** ![Capt.Ridley\_s\_Shooting\_Party](https://avatars.discourse-cdn.com/v4/letter/c/cc9497/32.png) [@Capt.Ridley\_s\_Shooting\_Party](https://boards.straightdope.com/u/Capt.Ridley_s_Shooting_Party)\ **Post date:** [March 17, 2015, 10:31am UTC](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068/44 "2015-03-17T10:31:04Z")
[ul] [li]Wealth inequality decreases the health of a population, [cite](http://www.sciencedirect.com/science/article/pii/S0277953609007655),[/li][li]Longer spells of economic growth are robustly associated with a more equal income distribution, [cite](https://www.imf.org/external/pubs/ft/sdn/2011/sdn1108.pdf),[/li][li]High inequality increases economic instability, [cite](https://www.imf.org/external/pubs/ft/wp/2010/wp10268.pdf),[/li][li]High inequality reduces economic growth, [cite](http://www.oecd.org/els/soc/Focus-Inequality-and-Growth-2014.pdf).[/li][/ul] ---
**Author:** ![Urbanredneck](https://avatars.discourse-cdn.com/v4/letter/u/ea5d25/32.png) [@Urbanredneck](https://boards.straightdope.com/u/Urbanredneck)\ **Post date:** [March 17, 2015, 11:36am UTC](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068/45 "2015-03-17T11:36:45Z")
I heard in Los Angeles the best route to be a garbage man are in the wealthy areas because all the rich people who live there, instead of selling their old furniture, simply put it on the curb in the trash. And they are not above putting out a $10,000 couch just because it was the wrong color of the month. So the trash guys pick up all kinds of good stuff. That tells me wealth can be corrupting and lead to some very strong ethics issues. Also the money for the wealthy is often spent on foreign goods so their is little benefit for Americans. Plus just because your working on a billionaires house, doesnt mean they will pay the average worker any better. Matter of fact they often prefer cheaper illegal labor who dont speak any english because they know they will keep secrets better. ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [March 17, 2015, 4:43pm UTC](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068/46 "2015-03-17T16:43:12Z")
> [@handsomeharry](#): > > One of my contracts is with a Mom and Pop operation. They don’t give a shit about me. They don’t offer health benefits, which is something that Walmart does. > It’s an urban myth that Walmart is any worse than any other company. Find any of your Walmart employees who were ‘locked in’ and ask them if they were free to leave at any time. The results will shock you. > It’s also an urban myth that some M&P does give said crap about employees. If so, they charge the public substantially more for anything that they sell. M&P aren’t in business to give a crap about their employees-they are in business to make money, and, they will do an employee dirt just as quickly as Walmart, if it affects the bottom line. > If you know of a company/corporation/business that 'gives a crap about their workers", that fits your standards, list same, please. I was comparing WalMart to a place like Costco. Mom & Pop stores around here are staffed by relatives mostly, so I don’t know how to consider them, but probably cover a wide range of caring. Just about any big Silicon Valley company cares about its employees - it has to, or they’ll leave to go down the street. Great health benefits, decent salary, very flexible schedules. When my wife’s retina detached and I had to take her to the doctor every other day, and take care of her as she was forced to lie in bed, I could work from home no problem and no one really cared how much I did during the emergency. My daughter is working for a cheapo airline. Employees seem pretty well taken care of, maybe more than the passengers. It is a decision by management about whether you want to treat workers as identical cogs or as real people who can make you successful. And best of all was the Bell System, where I started, where, before divestiture, people worked their entire careers and were damn happy about it. ---
**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\ **Post date:** [March 17, 2015, 4:45pm UTC](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068/47 "2015-03-17T16:45:21Z")
> [@Urbanredneck](#): > > I heard in Los Angeles the best route to be a garbage man are in the wealthy areas because all the rich people who live there, instead of selling their old furniture, simply put it on the curb in the trash. And they are not above putting out a $10,000 couch just because it was the wrong color of the month. So the trash guys pick up all kinds of good stuff. I believe it. The very best thrift store my wife ever went to was in Palm Springs. Really high class stuff there. ---
**Author:** ![Urbanredneck](https://avatars.discourse-cdn.com/v4/letter/u/ea5d25/32.png) [@Urbanredneck](https://boards.straightdope.com/u/Urbanredneck)\ **Post date:** [March 18, 2015, 4:31am UTC](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068/48 "2015-03-18T04:31:03Z")
> [@Voyager](#): > > I was comparing WalMart to a place like Costco. Mom & Pop stores around here are staffed by relatives mostly, so I don’t know how to consider them, but probably cover a wide range of caring. > Just about any big Silicon Valley company cares about its employees - it has to, or they’ll leave to go down the street. Great health benefits, decent salary, very flexible schedules. When my wife’s retina detached and I had to take her to the doctor every other day, and take care of her as she was forced to lie in bed, I could work from home no problem and no one really cared how much I did during the emergency. > My daughter is working for a cheapo airline. Employees seem pretty well taken care of, maybe more than the passengers. > It is a decision by management about whether you want to treat workers as identical cogs or as real people who can make you successful. > And best of all was the Bell System, where I started, where, before divestiture, people worked their entire careers and were damn happy about it. Working for “Bayer” the German chemical company can be like that. ---
**Author:** ![handsomeharry](https://avatars.discourse-cdn.com/v4/letter/h/e9c0ed/32.png) [@handsomeharry](https://boards.straightdope.com/u/handsomeharry)\ **Post date:** [May 3, 2015, 6:03am UTC](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068/49 "2015-05-03T06:03:40Z")
[quote=“Capt.Ridley\_s\_Shooting\_Party, post:44, topic:714068”] [ul] [li]Wealth inequality decreases the health of a population, [cite](http://www.sciencedirect.com/science/article/pii/S0277953609007655),[/li][li]Longer spells of economic growth are robustly associated with a more equal income distribution, [cite](https://www.imf.org/external/pubs/ft/sdn/2011/sdn1108.pdf),[/li][li]High inequality increases economic instability, [cite](https://www.imf.org/external/pubs/ft/wp/2010/wp10268.pdf),[/li][li]High inequality reduces economic growth, [/ul][/li][/QUOTE] You have mischaracterized at least one of these…“his note argues that income distribution may also—and independently—belong in this ―pantheon‖ of critical growth determinants.” Operative words: “…may…pantheon…” (one of your [imf.org](http://imf.org) cites; already off page, not going back to look it up.) [Previous page](https://boards.straightdope.com/t/does-income-inequality-reduce-economic-output-and-is-there-evidence-on-way-or-the-other/714068.md?page=2)