[S]ince 1960, the level of income inequality for U.S. individuals as measured by the "fine" Gini index is nearly constant, but has increased significantly for U.S. households. What has changed over that time is the composition of U.S. households, with a steady increase in the percentage of single person households.If only the people pushing such policies could see that....
Without a corresponding increase in the measured income inequality for U.S. individuals, the increase in the measured income inequality for U.S. households has been almost entirely driven by the increase in the number of single person households over time.
So income inequality among U.S. households isn't increasing because the rich are getting richer. That means that policies intended to right this situation by going after the rich in the name of "fairness" are guaranteed to fail, because the real cause of the increase in income inequality among U.S. households over time is something that cannot be fixed by such actions.
Monday, December 10, 2012
POLITICAL CALCULATIONS: It's a long and well-executed post on income inequality. Here's the (condensed) conclusion:
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