As I wrote in a recent article (Capitalism and Democracy), despite decreases in global inequality because of economic growth in South East Asia, in-country income inequality has been rising. However, this analysis of inequality is misleading as income inequality is less relevant to well being than real consumption inequality.

Interestingly, inequality in life satisfaction has been shrinking in OECD countries suggesting that the quality of life across the income scale is becoming more similar. Inequality has narrowed dramatically in height, life expectancy and leisure. As William Robert Fogel, a Nobel Prize winning economist put it: “In every measure that we have bearing on the standard of living … the gains of the lower classes have been far greater than those experienced by the population as a whole.

Differences in material goods have also declined dramatically. For instance, despite huge differences in prices for various types of cars, air travel or refrigerators, the difference in the actual services rendered is rather small – and nothing relative to the difference between having the good or service and not having it. Today 70% of Americans below the poverty line have at least one car!

Over time the consumption pattern of the less fortunate has become very similar to that of the wealthy. This compression is the predictable result of innovation in production and distribution that push new technologies down the price scale incredibly fast.

As entrepreneurs we sometimes make vast fortunes and widen the income gap but in so doing, we produce ever higher quality goods at ever lower prices reducing inequality where it matters most!

In other words, income inequality no longer matters!

The movie is good, not great. It’s extremely well done and acted. However, given that it’s directed by Ridley Scott (Alien, Blade Runner, Gladiator, Black Hawk Down), I expected to be completely wowed – by maybe I am holding him to impossible standards. I should not complain too much: I was thoroughly entertained.

Despite opening with a bang – the movie has to establish Denzel Washington as a bad guy – the beginning is slow and long. I would have cut most of Russell Crowe’s back story with his wife – the character is so clear cut that the nuances don’t seem to add much. However, somehow the movie grows on you and you start caring about the characters. By the end, the pace has dramatically quickened and you can’t wait to see what happens next! I definitely recommend seeing the movie.

As a brief non sequitur: it’s one of the few movies where the two nemesis share almost no screen time together. In fact for most of the movie, they don’t know of the existence of the other. While the concept of two enemies never jousting in person would seem counter intuitive, it was extremely well done and effective!

They are so incredibly cute 🙂