Trickle up, tax, and get over it

The economic downturn and proposed solutions have placed several of Johnson’s own in the media spotlight. In “Trickle Up!” (The New York Times, “Green” blog, Aug. 3), Professor Stuart Hart suggests that economic solutions must begin at the base of the pyramid. Hart argues that working in low-income markets such as India and China can force innovators and entrepreneurs to drive complexity and cost from their products and the business models they create to sell them. He says that once these new solutions are tested and proven in the poorest communities, the theory goes, many can “trickle up” to the developed world, where features can be added for more affluent markets.

“US economist says rising executive pay gap has spawned expenditure cascades throughout the economy,” an article posted by Ireland’s leading economic publication (FinFacts Ireland, Aug. 24, 2010), cites Professor Robert Frank’s argument that in order to assist the middle class and help them make ends meet, the expenditure cascades caused by the rising executive pay gap — starting with increased spending on housing — must be closed, and that consumption taxes rather than arbitrary limits would be a more effective mechanism to close the pay gap. “You’re Rich. Get Over it” (Newsweek, Sept. 16) cites Frank’s research on how people assess their well-being — “not so much on how much they make and consume, but on how much they make and consume compared with their neighbors.”

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