Michael Erin is a respected presence in the Chicago financial sphere working for a boutique consultancy providing property valuation, management, and brokerage services. With past experience as a member of the Las Vegas Global Economic Alliance, Michael Erin maintains membership in the International Economic Development Council and has a strong interest in economics and public policy.
A recent Quartz article explored the ideas of Nobel Prize-winning Princeton economics professor Angus Deaton on questions of persistent US inequality. According to Deacon, it is not inequality itself that is a major issue in today’s society, as evidenced by Americans’ enduring love of entrepreneurial boot-strappers and rags-to-riches narratives. Rather, it is unfairness that is the root issue. As Deacon sees it, corporate mergers often create new efficiencies, economies of scale, and increased profits that do not translate into increased wages for workers.
This ties into the growing role of the stock market in directing capital flows: while the stock market does create incentives for innovation, it also causes a “shift of resources from labor to capital.” As Deacon describes it, this is played out in current US scenarios where wages are stagnant, and corporate profits consistently outpace GDP by between 20 and 25 percent.
A recent Quartz article explored the ideas of Nobel Prize-winning Princeton economics professor Angus Deaton on questions of persistent US inequality. According to Deacon, it is not inequality itself that is a major issue in today’s society, as evidenced by Americans’ enduring love of entrepreneurial boot-strappers and rags-to-riches narratives. Rather, it is unfairness that is the root issue. As Deacon sees it, corporate mergers often create new efficiencies, economies of scale, and increased profits that do not translate into increased wages for workers.
This ties into the growing role of the stock market in directing capital flows: while the stock market does create incentives for innovation, it also causes a “shift of resources from labor to capital.” As Deacon describes it, this is played out in current US scenarios where wages are stagnant, and corporate profits consistently outpace GDP by between 20 and 25 percent.
