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Schumpeter's Simile for Capitalist Mobility

(p. 156) In fact, the upper strata of society are like hotels which are indeed always full of people, but people who are forever changing.


Schumpeter, Joseph A. The Theory of Economic Development: An Inquiry into Profits, Capital, Credit, Interest, and the Business Cycle. Translated by Redvers Opie. translation of 2nd German edition that appeared in 1926; translation first published by Harvard in 1934 ed. New Brunswick, NJ: Transaction Publishers, 1983.


The cross-sectional analysis that keeps being trumpeted when looking at income inequality has been frustrating to say the least, not to mention the constant focus on the top 1% when we should be more worried about the larger segment of the population. If you look at census data of households as well you can see a trend of a shrinking middle class--but one that has been shrinking *upward* for the last 30 years. Yet you never hear about *that* fact in the media.

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