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Comment on The Wrong Inequality

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Even the focus on "the 1%" is misleading, because the group is far from homogenous.

There's a mountain of difference between, say, a doctor earning $400,000 and a trader earning north of $10 million. The outsized gains in the past 30 years have been made by the folks in the latter category. Your typical doctor or lawyer has always done well for himself; this is no great surprise. But he's never been yachts-and-mansions wealthy, and he's no closer to that mark today than he was decades ago. Rockstar doctors and lawyers, occasionally. But doctors and lawyers on average, no.

The real focus should be on the financial sector, where one needn't be a rockstar to earn more in a single year than most white collar professionals earn in ten. The finance industry has expanded rapidly in recent decades, occupying a larger and larger slice of the US economy, and baking more and more volatility into the pie. That many of its players are mega-rich is merely a symptom. The real issue is that finance is so powerful and so omnipresent.

There is a place for a healthy financial sector in a modern economy. But an economy can't thrive on "services" alone -- a fact the US is learning the hard way, after decades of being told the contrary by banks and consultancies.

it's not just financial sector. there are execs, directors, VPs and such in powerful organizations getting paid millions in many industries including:

Network and Other Communications Equipment Internet Services and Retailing Pharmaceuticals Medical Products and Equipment Railroads Financial Data Services Mining, Crude-Oil production Securities Oil and Gas Equipment, Services Scientific, Photographic, and Control Equipment Household and Personal Products Utilities: Gas and Electric Aerospace and Defense Food Services Industrial Machinery Food Consumer Products Electronics, Electrical Equipment Commercial Banks Telecommunications Chemicals Construction and Farm Machinery Insurance: Life, Health (stock) Information Technology Services Computers, Office Equipment Metals

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