Well, I guess I don’t let my mind get out and wander enough because I still don’t see the connection between economic expansion and lowering of wealth inequality that you mentioned previously — did I overlook a chart you inserted?
No. Even if I had drawn the chart, I still would have had to do the regression, because the correlation between the data is not 1:1. That has nothing to do with politics; the human eye and brain can’t visually see correlations unless they are extremely strong — — it’s just too much data to process.
Here’s what I mean. This chart shows two datasets (in this case, the S&P 500 and the Dodge and Cox Stock mutual fund). They are highly correlated, to the tune of R=.98.
Pretty easy for you to see that when the S&P 500 goes up, so does DODGX, right? Highly correlated.
Now, here’s what S&P 500 vs TLT (which tracks the government long bond) looks like, last 10 years. R=.68, which is still more correlated than the GDP/Inequality metrics.
Could you tell that those lines are still pretty highly correlated? My guess is you looked at them, and said “well, it KINDA looks like they move together maybe a little…..”.
But in fact, they move together kinda a lot. It’s just hard to process.
Now, let’s add in the GDP Growth vs Dispersion of Earnings, the one that had a NEGATIVE correlation of -.52:
Looks like gook, right? You visually can’t see any inverse correlation, but mathematically, those two lines are moving opposite one another to a moderately high extent.
That’s why you gotta do the math. It teaches you what your eyes can’t.
I remain convinced that people are not aware of the rising inequality that’s been occurring.
Well, I’ll hold my view as well. They’re aware, and aware that it is a problem in the abstract, but not relevant to their day to day lives. I would prefer that they pay more attention to it as well.
Remember when Trump railed against Wall St & Clinton on the campaign trail?
Not Wall Street as much as “the swamp”. Personally, I never considered Wall Street to be part of the swamp. I would much rather have the economy being run by people who understand how it works, as a general rule, as opposed to people who haven’t a clue. But that’s not a difference between Trump and Clinton; both of them were going to hire Goldman Sachs to run things, anyway.