Goodisgood,butbettercarriesit.

精益求精，善益求善。Goodisgood,butbettercarriesit.

精益求精，善益求善。交易員分析員培訓(xùn)資料系列歷史數(shù)據(jù)和分析3ctober29,2008ctober29,2008PAGEPAGE61ctober29,2008PAGEo20081029AmericanIncomeInequalityAmericanInequalityTheTopTenth:WithintheTopTenth:TheTopTenThousand:ACloserLook:DifferencesinLogEarnings:WageRatios:Decomposing:Startwiththe1940distribution:ChangetheXs(characteristics):Changethebetas(prices):Changetheresiduals:Before1940:AfterWWII:Postedat01:39PMinLectureNotes|Permalink|Comments(0)October27,200820081027AmericanEconomicHistory:TheFurnaceWheretheFutureIsBeingForgedInvestment,Resources,Invention,andTechnologicalChangeAmericais:ResourcerichSkilledlaborabundantEnergetic,entrepreneuriallaborabundant(tohavecrossedanocean...)Americaisalsocapitalrich,andnewcapitalrich--hencetechnologicallyadvanced**Thefurnacewherethefutureisbeingforged...LaborandCapitalAmerica'sCommitmenttoEducation:Iowa:ClaudiaGoldinandLarryKatzlookatIowahighschoolsAmericahasaverystrongandveryearlycommitmenttogeneraleducationEurope:whynotprovidepeoplewiththeeducationthey'llneedearly(answer:peoplechangejobs,theeconomychanges,thebackgroundknowledgebaseisveryimportant)Europe:educatetheworkingclassesandthey'llaskformore(response:yes,that'sthepoint)America'scommitmenttohumancapitalasaverypowerfulmultiplierofproductivityAmericaandUnions:TheEarlyStages:AmericahasalonghistoryoflaborunionsAmericahasalong,bloodylaborhistoryPinkertonsFederals--GroverClevelandvs.JohnPeterAltgeldinthebreakingofthePullmanstrikeEarlyunions:KnightsofLaborEarlyunions:IWWUnionthreat:theIWWandHenryFord's$5day.Justbecauseunionsdon'thavelotsofmembersandwinlotsofstrikesdoesn'tmeanthattheyareunimportantAmericaandUnions:CraftUnions:Craftunions:theAFLCraftunions:theAMAAfterWWI:thePalmerRaidsandtheRedScareThe1920s:WelfareCapitalismLegaldoctrines:LochneranditsfriendsAmericaandUnions:TheGreatDepressionandAfter:Sit-downstrikesIndustrialunionism--theCIOTheAFL-CIOTheUMWandtheTeamstersTheNLRAandtheNLRBTheWarLaborBoardTheTaft-HartleyActRollingBackUnionizedAmericaLawyersRight-to-workInterstatecompetitionInternationalcompetition*MonopolyandvoicefacesofunionismThesituationtoday:public-sectorunionshaveapowerfuledge.privatesectorunions...notso...Whatrolehasglobalizationplayedintheerosionofunionpower?Uncertain...InvestmentBanking:RoutingAroundCapitalMarketFailures:Thecomingofthecorporation:limitedliabilityandprofessionalmanagementWhoguardstheguardians?Example:LelandStanford(andHuntington,andHopkins,andCrocker),theCentralPacific,andBritishinvestors...Separationofownershipfrommanagementcreatesallkindsofprincipal-agentandmanagement-monitoringproblemsHowtosolvethem?Financecapitalism.J.P.Morganandthe"MoneyTrust"ComplaintsabouttheMoneyTrust:LouisBrandeis:"personalpowerisunAmerican"ComplaintsabouttheMoneyTrust:theNorthernSecuritiesPanicProgressiveattackontheMoneyTrustfails--until1933comes*FinanceAftertheGreatDepression:*WiththecomingofFDR,theProgressiveEraprogramfortamingtheMoneyTrustisdustedoffandputintoaction:TheexaltationofmanagementattheexpenseofownershipandmonitoringTheendofutilityempires--thePUHCActTheseparationofinvestmentfromcommercialbankingThelarge-scaleprovisionofinformationThelevelplayingfieldTheBerle-Meansproblem:managersselectthemselves,sohowarestockholders'interestsguarded?TheGalbraithian"technostructure"RecentFinance:Thecomingofthe1980sJunkbondsTakeoversRapidly-climbingCEOpayThereintegrationofhighfinanceHowwelldoourfinancialmarketsreallywork?It'sstillanopenquestionUpwardMobilityHoratioAlgerandBenjaminFranklinEuropeissupposedtobeaboutwhoyourfamilyisAmericaissupposedtobeaboutwhoyouare--althoughitwasoneofNapoleon'sgeneralswhosaidthat"Iammyancestors"AbrahamLincoln'sbelief:anyonewhowantstocanmoveup--acombinationof:PlentyofroomatthetopLotsofimmigrantsto(temporarily)fillinatthebottomAfairlyequaldistributionofwealthmeaningthatstartswerenottoofarapartAllThisChangesintheMiddleoftheGildedAge:TheClosingoftheFrontierandtheGreatImmigrationWaveNomorefreeland--directeffects(can'thomestead)andindirecteffects(immigrantsnowputdownwardpressureonrealwages)Immigrants:arethe"newimmigrants"notfromnorthwestEuropeAmerican?InthecaseofAsians,theansweris"obviouslyno""Races"inPennsyvlaniain1910:whites,blacks,slavs,Latins...ThepeakofProgressivesTheNewDealpicksuptheProgressiveEraprogram,andenactsitImmigrationrestrictionsplayanuncertainbutprobablylargeroleSocialdemocracyandsocialinsurance...MinimumwagesUnionsagainMiddle-ClassAmericaTheGreatCompressioninwagesUnions?Wartime(WWII,thatis)?SocialchangesSupplyanddemand?Freelandagain--thistimefreelandtobuyahousewithincommutingdistanceofanywhere...TheReturnstoSkillTheovereducatedAmericanTheenormousexpansionofwageinequalitysince1970Allofasudden,positionmattersalotTheAnemiaofSocialDemocracyinAmericaAmericawasneverasupwardlymobileaplaceasitthoughtitwas...Europewasneverasrigidaplaceasitthoughtitwas...Increasingrisk(butthe"risk"ofbeingbankruptinsteadofdeadisagoodthing--asMarthaStewartwouldsay--no?WhyDoesn'ttheUnitedStatesHaveaEuropean-StyleWelfareState?Racism?ThemythofHoratioAlger?Anotherpossibleanswer:it'sjusttakingusalongtimetobuilditup...Postedat01:55PMinLectureNotes|Permalink|Comments(0)October22,200820081022TheGlobalEconomyWorldWarII:OriginsofWorldWarIIInGermany:theGreatDepressionbringsHitlertopowerNoGreatDepressioninGermany,noHitlerHitlertakeshisMalthustooseriouslyBelievesthatonlyapopulousGermanycanbeastrongGermanyBelievesthatonlyaGermanywithlotsoffarmlandcanbeapopulousGermanyHencewantstodotothePolesandtheRussianswhattheAmericansdidtotheIndiansRoosevelteagertofightHitlertothelastBriton(andgivethemplentyofmaterielinthemeantime)AmericanotsoeagerHoweagerwasRoosevelttocommitAmericatoWorldWarIIinEurope?Notclear.AndafterPearlHarboritwasGermanythatdeclaredwarontheUnitedStatesInJapan,theGreaterEastAsiaCo-ProsperitySphereTakeoverofManchuriain1931WarwithChinabeginningin1937OccupationofIndo-Chinain1940Roosevelt'sultimatum:WithdrawfromIndochina(andChina?)orwe'llcutoffyouroilDeanAchesonattheStateDepartmentdidindeedcutofftheiroilPearlHarborastheresponseRoughNumberswithRespecttoMilitaryProduction(aspercentofNaziGermany):450%:U.S.150%:Britain100%:Germany80%:Russia25%:Japan15%:ItalyThewonderisnotthattheallieswongiventhattheydecidedtofightThewonderisthattheydecidedtofighttotheendThewonderisthattheaxispowersheldonforsolong.Out-producedfive-to-oneProfessionalexcellenceoftheNaziArmy...Professionalexcellenceofthestart-of-warJapanesefleet...50milliondeadinWorldWarII6millionJews5millionChinesecivilians8millionRussiancivilians4millionRussianPOWs2millionPolishciviliansEtcetera...Plusallthebattleandmilitarydeaths...WorldWarIICuredtheDepressionintheU.S.:Extraordinarylevelsofaggregatedemandspending--militaryspending--risesto40%ofGDPTheten-millionmanarmyUnemploymentdownto2%orlowerRosietheRiveterPricecontrolsandrationingAfterWWII,fewdoubtedKeynes'sclaimthatgovernmentcouldcontroltheeconomyTryingtostopthereturnoftheGreatDepression:TheEmploymentActTryingtostopthereturnoftheGreatDepression:TheMarshallPlanEichengreenandDeLong'sinterpretationoftheMarshallPlan:keybenefitthatitallowedthegood"mixedeconomy"guystowinthepoliticalstruggleinWesternEuropeAlternatives?PopuliststatistsalaPeron--andstagnationAlternatives?Communists--andeventualstagnationAlternatives?Right-wing"holdwhatwehave"semi-fascistsAreEichengreenandDeLongright?PerhapsthethreatfromStalinhadasmuchtodowithpost-WWII"consensus"politicsinWesternEuropeastheMarshallPlandid...*Perhapsgoodleadership:Schumann,Monnet,deGasperi,Attlee,Adenauer,Erhard...Postwar:AfterthePostwar:ProductivitySlowdownandEndofthePopulationExplosion:Postedat01:01PMinLectureNotes|Permalink|Comments(0)20081013:TheGreatDepressionAudio:TheGreatDepressionTheCollapseofRealGDP,andRecovery:ComponentsofRealGDP:TheConsumptionFunction:TheSemi-StabilizingRoleofGovernment:Dr.NewDealandDr.Win-the-War:TheCollapseofPrivateInvestment:Canaccount,withmultiplier,foressentiallyeverything...ThePropagationMechanism:ThreeTheoriesfortheCollapseofInvestment(andConsumption):Friedman:IneptFederalReservepolicyandbankingcrises...DeLongandSummers:Expecteddeflationandself-fulfillingexpectations...Bernanke:Bankfailuresandthecreditchannel...TheImpulse:????1928Theconstructionboomisover.Farmers'shareofthenationalincomehasdroppedfrom15to9percentsince1920.BetweenMay1928andSeptember1929,theaveragepricesofstockswillrise40percent.Tradingwillmushroomfrom2-3millionsharesperdaytoover5million.1929HerbertHooverbecomesPresident.Businessinventoriesgrowsthreetimeslargerthantheyearbefore.Freightcarloadsandmanufacturingfall.Automobilesalesdeclinebyathirdintheninemonthsbeforethecrash.RecessionbeginsinAugust,twomonthsbeforethestockmarketcrash.StockmarketcrashbeginsOctober24.InvestorscallOctober29"BlackTuesday."CongresspassesAgriculturalMarketingActtosupportfarmersuntiltheycangetbackontheirfeet.1930ByFebruary,theFederalReservehascuttheprimeinterestratefrom6to4percent.ExpandsthemoneysupplywithamajorpurchaseofU.S.securities.However,forthenextyearandahalf,theFedwilladdverylittlemoneytotheshrinkingeconomy.TreasurySecretaryAndrewMellonannouncesthattheFedwillstandbyasthemarketworksitselfout:"Liquidatelabor,liquidatestocks,liquidaterealestate…valueswillbeadjusted,andenterprisingpeoplewillpickupthewreckfromless-competentpeople."TheSmoot-HawleyTariffpassesonJune17.Withimportsformingonly6percentoftheGNP,the40percenttariffsworkouttoaneffectivetaxofonly2.4percentpercitizen.Thefirstbankpanicoccurslatethisyear.DemocratsgaininCongressionalelections,butstilldonothaveamajority.GDPfalls9.4percentfromtheyearbefore.Theunemploymentrateclimbsfrom3.2to8.7percent.1931NomajorlegislationispassedaddressingtheDepression.Asecondbankingpanicoccursinthespring.GDPfallsanother8.5percent.Unemploymentrisesto15.9percent.1932GDPfallsarecord13.4percent.Unemploymentrisesto23.6percent.Industrialstockshavelost80percentoftheirvaluesince1930.10,000bankshavefailedsince1929,or40percentofthe1929total.TheFedmakesitsfirstmajorexpansionofthemoneysupplysinceFebruary1930.CongresscreatestheReconstructionFinanceCorporation.CongresspassestheFederalHomeLoanBankAct.BonusMarch:July28,1932Toptaxrateisraisedfrom25to63percent.Roosevelt:"Ipledgeyou,Ipledgemyself,toanewdealfortheAmericanpeople."1933AthirdbankingpanicoccursinMarch.RooseveltdeclaresaBankHoliday"100Days"ofintensivelegislativeactivity.MillionairebusinessmendiscussoverthrowingRooseveltwithamilitarycoup.TalktoGeneralSmedleyButler.CongressauthorizescreationoftheAgriculturalAdjustmentAdministration,theCivilianConservationCorps,theFarmCreditAdministration,theFederalDepositInsuranceCorporation,theFederalEmergencyReliefAdministration,theNationalRecoveryAdministration,thePublicWorksAdministrationandtheTennesseeValleyAuthority.CongresspassestheEmergencyBankingBill,theGlass-SteagallActof1933,theFarmCreditAct,theNationalIndustrialRecoveryActandtheTruth-in-SecuritiesAct.U.S.goesoffthegoldstandard.RooseveltrejectsKeynes'advicetobeginheavydeficitspending.1934CongressauthorizescreationoftheFederalCommunicationsCommission,theNationalMediationBoardandtheSecuritiesandExchangeCommission.CongresspassestheSecuritiesandExchangeActandtheTradeAgreementAct.Theeconomyturnsaround:GDPrises7.7percent.Unemploymentfallsto21.7percent.Alongroadtorecoverybegins.SwedenbecomesthefirstnationtorecoverfullyfromtheGreatDepression.1935TheSupremeCourtdeclarestheNationalRecoveryAdministrationtobeunconstitutional.CongressauthorizescreationoftheWorksProgressAdministration,theNationalLaborRelationsBoardandtheRuralElectrificationAdministration.CongresspassestheBankingActof1935,theEmergencyReliefAppropriationAct,theNationalLaborRelationsAct,andtheSocialSecurityAct.GDPgrowsanother8.1percent.Unemploymentfallsto20.1percent.1936TheSupremeCourtdeclarespartoftheAgriculturalAdjustmentActtobeunconstitutional.Toptaxrateraisedto79percent.GDPgrowsarecord14.1percent.Unemploymentfallsto16.9percent.GermanybecomesthesecondnationtorecoverfullyfromtheGreatDepression1937TheSupremeCourtdeclarestheNationalLaborRelationsBoardtobeunconstitutional.RooseveltseekstoenlargeandthereforeliberalizetheSupremeCourt.GDPrises5.0percent.Unemploymentfallsto14.3percent.WorldWarIIinAsiabeginswiththeJapaneseinvasionofChina.1938CongresspassestheAgriculturalAdjustmentActof1938andtheFairLaborStandardsAct.GDPfalls4.5percent.Unemploymentrisesto19.0percent.Britainbecomesthethirdnationtorecoverasitbeginsdeficitspendinginpreparationforwar.1939GDPrises7.9percent.Unemploymentfallsto17.2percent.WorldWarIIinEuropebeginswithHitler'sinvasionofPoland.20081008Manias,Panics,andCrashesAudio:TheComingoftheGreatDepressionRobertPeel,1844:MyconfidenceisunshakenthatwehavetakenallthePrecautionswhichlegislationcanprudentlytakeupagainsttheRecurrenceofapecuniaryCrisis.ItmyoccurinspiteofourPrescuamayoccurinspiteofourPrecautions,andifitdoes,andifitbenecessarytoassumeagraveresponsibilityforthepurposeofmeetingit,Idaresaymenwillbefoundwillingtoassumesucharesponsibility.Iwouldrathertrusttothisthanimpairtheefficiencyandprobablesuccessofthosemeasuresbywhichonehopestocontroleviltendenciesintheirbeginning,andtodiminishtheriskthatextraordinarymeasuresmaybenecessary...KarlMarx,1851:Asisalwaysthecase,prosperityveryrapidlyencouragedspeculation.Svides...temporarymarketoutlets,whileforthisveryreasonprecipitatingtheoutbreakofthecrisisandincreasingitsforce.Thecrisisitselffirstbreaksoutintheareaofspeculation;onlylaterdoesithitproduction.Whatappearstothesuperficialobservertobethecauseofthecrisisisnotoverproductionbutexcessspeculation,butthisisitselfonlyasymptomofoverproduction.Thesubsequentdisruptionofproductiondoesnotappearas[whatitreallyis,]aconsequenceofitsownpreviousexuberance,butmerelyasasetbackcausedbythecollapseofspeculationThecrisisreacheditspeak...allcommercialtransactionshadcometoastandstill.AdeputationfromtheCitythenbroughtaboutasuspensionoftheBankActof1844,whichhadbeenthefruitofthedeceasedSirRobertPeel'ssagacitySincehisdeathPeelhimselfhasbeenapotheosizedinthemostexaggeratedfashionHispowerovertheHouseofCommonswasbasedupontheextraordinaryplausibilityofhiseloquence.Ifonereadshismostfamousspeeches,onefindsthattheyconsistofamassiveaccumulationofcommonplaces,skillfullyinterspersedwithalargeamountofstatisticaldata...KarlMarx,1867:The...decennialcycle...ofperiodsofaverageactivity,productionathighpressure,crisisandstagnation,dependsontheconstantformation,thegreaterorlessabsorption,andthere-formationoftheindustrialreservearmyorsurplus-populationThesuperficialityofPoliticalEconomyshowsitselfinthefactthatitlooksupontheexpansionandcontractionofcredit,whichisameresymptomoftheperiodicchangesoftheindustrialcycle,astheircause...20081006Economics113Lecture:Post-CivilWarGrowth,Industrialization,Wages,Profits,andInequalityPost-CivilWarGrowth,Industrialization,Wages,Profits,andInequalityGrowthAccounting,1865-1929-UploadaDocumenttoScribdLabor:EducationandImmigration:ImmigrationGainstoimmigrantsGainstonative-bornconsumersGainstonative-borncapitalownersLossestonative-bornunskilledFrancisWalkercounterfactual...EducationTechnicaleducationElementaryeducationHigh-schooleducationHomesteadingtheinformationfrontierafter1890...Inequality"Theycontrolthepeoplewiththepeople'sownmoney."SoLouisBrandeis,strongDemocraticpoliticalactivist,wroteoftheturnofthecenturyfinancierswhohesawascontrollingtheAmericaneconomythroughtheirdominationofthecommandingheightsoffinance.TheanswerthatBrandeissawwassimple:separateownershipfromcontrol,sothatthebankerswhocollectedthesavingsofthepeoplethroughtheacceptanceofdepositswouldbeunabletousethosesavingstoincreasetheirbargainingpowervis-a-visthemanagersofAmericanenterprise.ItisdoubtfulthatLouisBrandeis'sproposedsolutionwasanysolutionatall.Large-scalebusinessesborrowfrombanks,true.Butremovesomepowertocontrolandinfiuencethemanagersoflarge-scaleenterprisesthatborrowfromthebankers,andwheredoesitgo?ItfiowstothemanagersoftheoligopoliesandthemonopoliesthatnolongerhavetolookovertheirshoulderstomakesurethatWallStreetissatisfied;itdoesnotfiowtothe"people."ButifBrandeis'scure&emdash;todestroythe"moneytrust"&emdash;wasfalsecure,itwasaresponsetoarealmalady.FortheUnitedStatesasoftheturnofthetwentiethcenturywasamuchmoreeconomicallyandsociallyunequalplacethanithadbeeneventhirtyyearsbefore.OntheeveoftheAmericanRevolution,theUnitedStates-to-behadbeenarelativelyegalitariansociety.Therichestonepercentofhouseholdsownedperhapsfifteenpercentofthetotalwealthintheeconomy&emdash;averylowvalueforsuchaninequalitystatistic.EvenbytheimmediaeaftermathoftheCivilWarwealthwasstillnotthatconcentrated:thetoponepercentofhouseholdsappeartohavehadalittlemorethanaquarterofthewealthofthecountry.By1900,however,theU.S.hadbecometheGildedAgecountryofindustrialprincesandimmigrantslivingintenementsofourpoliticalmemory.Ontheonehand,AndrewCarnegiebuildingthelargestmansioninNewport,RhodeIslandwithgoldwaterfaucets.Ontheotherhand,146largely-immigrantworkersdyinginthe1911TriangleShirtwaistFactoryfireinSurveyssuggestthatin1929therichestonepercentofU.S.householdsheldsomethinglike45percentofnationalwealth,andthattheconcentrationofwealthhadbeensharplyrisinginthe1920s.WestronglysuspectthatWorldWarIhadseensubstantialdeconcentration,asinfiationerodedthevalueofbondholders'wealthandashighdemandforlaborboostedworkers'earnings.Itismyguessthatthesecondwasstrongerthanthefirst;thattheconcentrationofwealthwaserodedmoreduringWorldWarIthanitwasboostedinthe1920s,andthattheconcentrationofwealthintheUnitedStatespeakedsometimeinthetwentyyearsbeforeWorldWarI,withtherichestonepercentofhouseholdsowningsome50%orsooftotalnationalwealth.Growinginequality&emdash;notabsoluteimmiserizationoftheworkingclass,butagrowing(relative)gapbetweentheincomeandwealthofrichandpoorevenasindustrializationraisedlivingstandardsofallclasses&emdash;wasinasenseanaturalresultoftheformindustrializationtookinnineteenthcenturyAmerica.Rapidaccumulationofcapitaldidtendtocrowdunskilledlaboroutofitsplaceintheworkforce,anddidtendtoforceunskilledlaborerstoreducetheirrelativewagesinordertomaintainorwinbacktheirjobs.Inthenineteenthcenturyskilledandeducatedworkerscouldnoteasilybereplacedbymachines;capitalcouldmoreeasilysubstituteforunskilledworkers.Inaddition,theopportunitiesofindustrializationincreasedtheshareoftotalproductthatwaspaidasrentandprofits.Asfarmproductivityincreased,theagriculturalsectorshrank,releasingadditionalsuppliesofrelativelyunskilledworkerstotheurbanandindustrialjobmarkets.Andtthewavesofmid-andlate-nineteenthcenturyimmigrationincludedmanynonEnglishspeakers,whofounditverydifficulttoacquireskillsortousetheskillsthattheyhad.Thedistributionofincomeandwealthintheslaveholdingsouthhadalwaysbeenextraordinarilyunequal:howcoulditbeotherwisewhenone-thirdofthepopulationareheldaschattels?ButthedistributionofincomeandwealthinthesouthdidnotbecomemuchmoreequalaftertheCivilWar.Blacksremainedextraordinarilyimpoverishedrelativetowhites.Andevensouthernwhiteswerepoorrelativetonortherncitydwellersormidwesternfarmers.Inasense,therelativeimpoverishmentofthesouthwastobeexpectedgiventheeconomicandpoliticalchoicessouthernersmade.ThepreCivilWarsouthhadseenitswealthyaccumulatenotphysicalcapitalbutslaves.Theacquisitionofamachineraisessociety'stotalwealthandproductivepoweravailableperworker.Theacquisitionofaslavedoesnot:itdoesnotraiseproductivity,butmerelygivestheslaveholderanallbutunlimitedrighttoexploitthelaboroftheslave.TheCivilWardidnotimpoverishthesouth:itmerelytransferred"ownership"ofex-slaves'capacitiestolaborfrommasterstotheex-slavesthemselves.Itdidrevealhowimpoverishedtheslaveholdingsouthhadbecome.ChoicesmadeaftertheCivilWardidnothelp.Mechanizationdidnotcomerapidlytosouthernagriculture.Southerngovernmentsdidnotbelieveinagoodsystemofpubliceducation&emdash;particularlynotforblackAmericans.Thislackofaskilled,literate,andeducatedworkforcemeantthatformostofacenturynorthernmanufacturerswouldnotriskmovingtheiroperationstothesouth.ThesouthwouldnotbegintoclosetherelativeincomegapseparatingitfromtherestoftheUnitedStatesuntiltheperiodaftertheFirstWorldWar.Attemptstocountthewealthofthemerchantprincesthemselvesreinforcethesuspicionthatthepre-WorldWarIU.S.wasmoreunequalthanatanytimebeforeorsince.AcountryofimmigrantsandplutocratsisverydifferentfromthecountryofyeomanfarmersthattheUnitedStateshadbeeninitsFoundingFathers'imagination,andinlargepartinreality,inthelateeighteenthcentury.AlexisdeTocqueville,akeen-eyedcommentatoronAmericansocietyinthefirsthalfofthenineteenthcentury,hadfearedthegrowthofsuchaclassofplutocrats,suchan"aristocracyofmanufacturers":Theterritorialaristocracyofpastageswasobligedbylaw,orthoughtitselfobligedbycutom,tocometothehelpofitsservantsandrelievetheirdistress.Buttheindustrialaristocracyofourday,whenithasimpoverishedandbrutalizedthemenituses,abandonsthemintimeofcrisistopubliccharitytofeedthemBetweenworkmanandmastertherearefrequentrelationsbutnotrueassociation.Ithinkthat,generallyspeaking,themanufacturingaristocracywhichweseerisingbeforeoureyesisoneofthehardestthathaveappearedontheearthIntheUnitedStatestherisingconcentrationofwealthprovokedawidespreadfeelingthatsomethinghadgonewrongwiththecountry'sdevelopment.Therich(andmanyofthenative-bornnot-so-rich)blamedforeigners:aliensborninChina,Japan,Italy,Spain,Poland,andRussiawhowereincapableofspeakingEnglish,orunderstandingAmericanvalues,orcontributingtoAmericansociety.Manyofthemiddleclass,especiallythefarmers,blamedtherich,theeasterners,andthebankers.The"paranoidstyle"ofAmericanpoliticsflourished.YetbytheendofWorldWarIIallthiswasreversed--andtheUnitedStateswasamoreequalcountrythanithadbeensincethebeginningoftheGildedAge.WorldWarIsawasharpbutshort-livedcompressionoftheincomedistribution.Wagesbecamemuchmoreequalinthespaceofafewshortyears.Butthiscompressionwasquicklyundoneinthe1920's,whichsaw"veryunbalancedtechnologicalprogress,withproductivityadvancingfasterinautomobilesconsumerappliances,petrochemicals,andelectricutilities"thenelsewhereintheeconomy.Thesesectorswereskill-intensivesectors.Relativeskilledworkers,bothwhitecollarandbluecollar,onceagaincapturedthelion'sshareoftheincreasedincomesmadepossiblebytechnologicalchange.Thepropertyincomesharealsorosesomewhatinthe1920's.Itisuncertainwhetherrelativelypoorandunskilledbluecollarworkers