Showing posts from February, 2014

Income Inequality And The $19 Billion WhatsApp Deal

The recent news cycle has been dominated by two very different stories that fascinate us: Facebook’s eye-popping, $19 billion deal for WhatsApp and the Obama administration’s growing concern about income inequality.
How can these seemingly disparate points-of-view reconcile each other?

Through the Pareto Efficiency Criteria, a well-respected economic theory about optimal economic growth.

A Rising Tide The Pareto Efficiency Criteria states that as long as economic growth happens without hurting others, it’s good for an economy.
In the San Francisco Bay Area, in particular, this concept is a hot topic. The explosion of IPO-driven wealth largely from tech entrepreneurs is creating an economic boom in the region.
Some, though, argue there’s a downside. Prices for everything are higher. No doubt, there’s some truth to that, but there’s also the undeniable fact that when money is flowing, people spend more – a lot more. That does help everyone.
To continue to be the land of opportunity, our…