E-Book Overview
Why some people are rich and others poor can be explained in a number of ways. Income and Wealth focuses on who gets what and why. It explains the dynamics of income generation, how it is measured, and how such dramatic disparities in distribution come about. The book first defines various characteristics of income, with an emphasis on the gap between the rich and the poor, and reviews several theories to explain the disparities. Subsequent chapters discuss such timely topics as the vanishing middle class and the sky-high salaries of CEOs, Hollywood stars, and athletes. The final chapters consider the implications of policies, such as the minimum wage, taxes, immigration, and trade quotas, and expand the discussion to consider international comparisons. Featuring graphs and charts, a glossary of key terms, and a listing of references and resources, Income and Wealth explains the intricate, and often controversial, effects of economic policies on individuals, families, and communities. Moreover, it shows how the numbers can be manipulated by policymakers, pundits, journalists, and academics to promote various agendas—and shows readers how to recognize hyberbole and make better-informed decisions.
E-Book Content
Income and Wealth
ALAN REYNOLDS
GREENWOOD PRESS
Income and Wealth
Advisory Board Alan L. Carsrud Professor of Industrial and Systems Engineering, Clinical Professor of Management, and Executive Director of the Eugenio Pino and Family Global Entrepreneurship Center Florida International University Alan Reynolds Senior Fellow Cato Institute Robert Spich Senior Lecturer in the Global Economics and Management Group and Faculty Program Director, Center for International Business Education and Research, Anderson Graduate School of Management University of California, Los Angeles Wesley B. Truitt Chairman and Series Editor Executive-in-Residence College of Business Administration Loyola Marymount University Walter E. Williams John M. Olin Distinguished Professor of Economics George Mason University Charles Wolf Jr. Senior Economic Adviser and Corporate Fellow in International Economics The RAND Corporation
Income and Wealth ALAN REYNOLDS
GREENWOOD GUIDES TO BUSINESS AND ECONOMICS Wesley B. Truitt, Series Editor
GREENWOOD PRESS WESTPORT, CONNECTICUT LONDON
Library of Congress Cataloging-in-Publication Data Reynolds, Alan. Income and wealth / Alan Reynolds. p. cm. — (Greenwood guides to business and economics, ISSN 1559–2367) Includes bibliographical references and index. ISBN 0–313–33688–1 (alk. paper) 1. Income—United States. 2. Wealth—United States. 3. Income distribution—United States. I. Title. HC110.I5R478 2006 339.2'20973—dc22 2006021343 British Library Cataloguing-in-Publication Data is available. Copyright # 2006 by Alan Reynolds All rights reserved. No portion of this book may be reproduced, by any process or technique, without the express written consent of the publisher. Library of Congress Catalog Card Number: 2006021343 ISBN: 0–313–33688–1 ISSN: 1559–2367 First published in 2006 Greenwood Press, 88 Post Road West, Westport, CT 06881 An imprint of Greenwood Publishing Group, Inc. www.greenwood.com Printed in the United States of America
The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z39.48–1984). 10
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Contents
Illustrations
vii
Series Foreword by Wesley B. Truitt
ix
Introduction 1. Concepts and Measures
1 9
2. Work Matters
25
3. A Vanishing Middle Class?
47
4. The Wage Stagnation Thesis
57
5. The Top 1 Percent
73
6. CEOs