Is a Rise in Income Inequality a Myth?

Here’s an interesting article by Jim Pethokoukis (formerly of Reuters, now with AEI) in which he states that there really is no increase in income inequality.
I’ve clipped this portion in honor of Kevin,
“4. A 2010 study by the University of Chicago’s Bruce Meyer and Notre Dame’s James Sullivan notes that official income inequality statistics indicate a sharp rise in inequality over the past four decades: “The ratio of the 90th to the 10th percentile of income, for example, grew by 23 percent between 1970 and 2008.” But Meyer and Sullivan point out that income statistics miss a lot, such as the value of government programs and the impact of taxes. The latter, especially, is a biggie. The researchers find that “accounting for taxes considerably reduces the rise in income inequality” over the past 45 years. In addition, “consumption inequality is less pronounced than income inequality.””
Food for thought in the current OWS environment.
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