You are reading a single comment by @olaf_von_pokemon and its replies.
Click here to read the full conversation.
-
Not quibbling with you, becasue I don't think I disagee with you, but how is that 'unearned'? Is there a specific defintion of what consitiutes earned and unearned that's used by economists? I know thy have all sorts of terms that mean specific stuff
olaf_von_pokemon-
Earned income is wages in return for labour. Unearned income is rent, dividends etc that come from owning land or capital.
I think Thomas Picketty made the point that income from wages has been going down over the last few decades, while unearned income has been going up. He used a few more words though.
Lebowski
It is true that most very wealthy people make their money from dividends and rent, rather than wages. So this is actually 'unearned' income.
It could also be argued that by maximising profit and shareholder value, companies are screwing workers over. Amazon is an example.
I may be totally off track though.