Extreme Events, Resilience, and Uncertainty
Roger D. Jones
Center for Complex Systems and Enterprises
Stevens Institute of Technology
Hoboken , NJ USA
What are the right questions?
Income Inequality in the Last 100 Years in the U.S.
Note that income inequality was as high as it is today in the 1920s. It reached its bottom in the 70s.
U.S. Has Highest Inequality, But Only After Taxes (Gini Index)
But … it is part of the American mythology that everyone has the opportunity to be rich.
Unfortunately, the poorest regions of the country are the least mobile. Inequality seems to be associated with lack of mobility.
The Great Gatsby Curve
Causes of Inequality (Piketty)
Technology has eliminated mid-level jobs. What was left was demand for either highly-skilled technically-trained workers or low-skill, lowly-paid laborers.
At pay-setting organizations like banks and large corporations, “Above a certain level it is very hard to find in the data any link between pay and performance.”
Laxity in corporate governance
My own opinion is that the second two causes are probably consequences of the first. From my own experience managing companies I can say that Senior Managers take credit for any success, whether they are responsible or not.
Productivity: Be Careful What You Wish For
Increased productivity requires skilled highly paid workers.
The new market place requires skilled creative cooperation and competition
Matisse and Picasso
Steve and Bill
Unfortunately, this leaves many mid-level workers out because their skill sets did not keep up.