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America’s Disappearing Income Inequality
Cato ^ | October 19, 2022 | Scott Lincicome and Ilana Blumsack

Posted on 10/21/2022 6:14:12 AM PDT by devere

A new study from Cato adjunct scholar John Early explores how the Census Bureau overstates U.S. inequality by excluding taxes and welfare payments from the agency’s income estimates. Early shows that, when accounting for the taxes Americans (mostly middle‐ and higher‐​income) pay out of their own income and the welfare payments Americans (mostly lower‐​income) receive, 2017 income inequality between the top and bottom households shrinks from almost 17‐​to‑1 to just 4‑to‑1:...

Accounting for taxes and transfers, which better reflects Americans’ actual living standards, Early’s report also shows that U.S. income inequality actually declined over the last 70 years – contrary to popular belief.

As he notes, the Census Bureau’s overstated inequality statistics are commonly used to justify even more welfare spending and programs – despite the fact that, as we showed last year, inflation‐​adjusted transfer payments to low‐​income Americans approximately tripled between 1979 and 2018, and that the share of transfer payments received by middle‐​income Americans more than doubled in that same time.

Early’s study also debunks the oft‐​repeated claim that American incomes and economic well‐​being have stagnated in recent decades: When accounting for taxes, transfers, and inflation, median household income and average hourly earnings have increased substantially between 1967 and 2017.

(Excerpt) Read more at cato.org ...


TOPICS: Culture/Society; Miscellaneous
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Interesting article
1 posted on 10/21/2022 6:14:12 AM PDT by devere
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To: devere

Look no farther than Barack Obama - growing fabulously wealthy while the rest of us find it more and more difficult to survive.

The middle class has always been the major opponent of Communism. They prefer stability - they have too much to lose in a revolution. So the left is systematically destroying them.


2 posted on 10/21/2022 6:29:31 AM PDT by skeeter
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To: devere

The real problem is America’s Disappearing Income (full stop).


3 posted on 10/21/2022 6:43:28 AM PDT by Publius Maximus (It was a nice Republic, while it lasted.)
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To: devere

“U.S. income inequality actually declined over the last 70 years”.

No matter how you try and slice that pie, it’s still full of shiite.

The control of wealth in the hands of a few has been a bad thing throughout human history. It’s human nature.

Compare the wealth of (NYC+Boston+DC+LA+SF) to the rest of America. Money is Power. They got it, you don’t.

Centralized power in DC is controlled by M.O.N.E.Y., and they want it that way. Easier to have their way with the world.


4 posted on 10/21/2022 6:59:10 AM PDT by Macoozie (Handcuffs and Orange Jumpsuits)
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To: devere

It’s about time someone laid this out properly. The evidence is all around us, people keep saying “how can people afford these cars, housing, etc.?

They can afford it because that’s how well they are doing. The percentage of people who own their homes free and clear is at its highest rate ever too. The percentage of millionaire households is at a record level.

One caveat, some of this is due to the large Boomer population reaching their golden years. However, most of their wealth will be passed on to the echo-boomers, which will boost their prospects as well.


5 posted on 10/21/2022 8:23:18 AM PDT by SaxxonWoods (The only way to secure your own future is to create it yourself.)
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To: Macoozie

No, you are full of shiite.


6 posted on 10/21/2022 8:23:42 AM PDT by SaxxonWoods (The only way to secure your own future is to create it yourself.)
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To: devere

We are all lowering our standards of living and beginning to suffer in misery, equally, together; no matter how hard you work or do for yourself.


7 posted on 10/21/2022 9:16:04 AM PDT by vpintheak (Live free, or die!)
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To: devere

bwah ha ha ha....


8 posted on 10/21/2022 5:55:51 PM PDT by Glad2bnuts ("None of the people I know who didn't take take the Jab regrets their decision" ZERO)
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