Where are we going when we look at the Skew of wages toward the top? Regardless of the type of analysis, Entropy yields lognormal, variance yields normal, the skew effect will show up dramatically. What does this skew in wages toward the top imply?
When I started looking at economics I was looking at the supply and demand for government goods. Under Clinton, the demand for government goods dropped when progressive taxes were raised, the share of government in the overall economy dropped and the economic maintained vigorous growth.
I do believe that analysis will show the necessity of progressive taxes to keep both government and industry liquid. Not a libertarian position, but a position that is supported by the data. My thesis will be simple. When progressive taxes are low, it is advantageous for industry to shift more wages onto government in the form of benefits. The result being that lower scale workers have less wage adjustment done by industry and more done by Congress. In other words, excessive progressive policies support a two tier structure, the very wealthy and the rest.
More later.
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