Sunday, August 30, 2015

Income inequality has decreased in the U.S. in the last decade

If one looks at after-tax income, the increase in income inequality over time is greatly reduced. If one goes further and factors in the government’s attempts to redistribute income, income inequality is not increasing in the U.S. at all. This after-tax, after-transfer income essentially is a measure of how much stuff you can consume (either by buying it or because somebody gave you free stuff). And, as demonstrated by Gary Burtless of The Brookings Institution (a center-left think tank), income inequality measured this way has actually decreased in the U.S. over the decade from 2000-2010.

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