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Wednesday, September 06, 2006

Wealth

Jane Galt on the wealthy:

Contra the belief I have encountered among my commenters, most rich people did not inherit most of their wealth, and most of their income comes from wages rather than capital. Some of my interlocutors seem to be working off an income distribution model they clipped out of the 1928 Catholic Worker.

I would agree with her on how wealthy people get their income but not in the way she likely thinks one should agree with her. The point is that the vast majority of Americans are (1) wealthy and (2) get the majority of their income from wages, not capital. The very wealthy (who, I presume, Galt is alluding to when she refers to "wealthy") do get their incomes primarily from capital, but it is nonetheless true that the vast majority of Americans have incomes far in excess of the average person's income and, therefore, by any right, they are wealthy.

Thoughts similar to mine at Mankiw.

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