11-05-2007, 10:43 AM
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#259 (permalink)
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Banned
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I am concerned that Ron Paul's proposals are as unlikely as those of any republican candidates to improve what I perceive to be our most important negative economic trend. Implementing Ron Paul's ideas would be quite the opposite of improving wealth distribution.
Just so you know:
Quote:
http://adsabs.harvard.edu/abs/2006APS..MARA33007M
Abstract
It has been well established by computer simulations that a free, unregulated market economy (in the simplest model of a yard sale economy) is unstable and collapses to a singular wealth distribution. It is now a common procedure in computer simulations to stabilize a model by favoring the poorer partner in each transaction, or by redistributing the wealth in the society in favor of the poorer part of the population. Such measures stabilize the economy and create a stationary state with a Gini index G<1. This suggests that there is some optimal range of the Gini index which is indicative of a healthy and dynamic economy. To verify this assumption, I plotted the PPP (parity purchasing power) for all countries in the world against their Gini indices, and found that they all (with only 2 outliers) fall into one of two groups: ``wealthy'' countries with PPP>10,000/year, and the rest. The former are characterized by G=0.29±0.07, and the latter by a uniform distribution of all possible Gs. <h3>This means that an enforced wealth redistribution is not a moral act of social consciousness, but a necessary precondition for a sustainable economy. </h3>The existence of an optimal G is illustrated through a simple model of a yard sale economy with taxation.
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Quote:
http://209.85.165.104/search?q=cache...lnk&cd=5&gl=us
Page 3
....In this study, we analyze the effects of corruption on income inequality and
growth by using data from U.S. states. Our analysis advances the existing literature in
three ways. First, we avoid comparing different countries by examining differences in
income inequality, growth, and corruption across U.S. states. Data on corruption as
well as on income inequality and growth for U.S. states are more comparable than
those for different countries, and U.S. states are more similar in other dimensions that
are difficult to measure. .....
Page 5
... Between 1982 and 1997, five most corrupt states appear to be Illinois, Alaska, Tennessee,
Mississippi, and South Dakota whereas the five least corrupt states appear to be
Vermont, Oregon, Washington, Utah, and New Hampshire. Regarding income
inequality, Wisconsin, Vermont, Utah, Iowa, and Maine have the lowest Gini
Coefficients (lowest income inequality) whereas California, New Mexico,
Mississippi, Louisiana, and Texas have the highest Gini Coefficients (highest income
inequality). The summary statistics for four 4-year periods between 1982 and 1997
and for fifty states of all variables are given in Table 1. ....
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