AEIdeas

The public policy blog of the American Enterprise Institute

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Discussion: (5 comments)

  1. Jon Murphy

    Very interesting podcast.

    But I am still unsure as to why income inequality matters.

  2. Todd Mason

    No need to torture your brain as to how the interview subject tortures the data. The Cliff Notes:

    Census’ Current Population Survey does indeed show a dramatic disparity in income growth between the middle class and the well-to-do but ….

    Household income is more important because of shared expenses and the disparity is less. (Translation: the missus is much more likely to work today than she was in 1979. Missing in this discussion, how much household expenses increase because the missus is much more liked to work today than shew was in 1979.)

    Even household income doesn’t give us a true picture because it does not count transfer payments from the govt. (Translation: inflation indexing keeps SS benefits on pace with inflation. What’s missing: People living on the average SS benefit of $1230/month might not see this as largesse.)

    And we haven’t counted taxes yet! (Translation: child credits, education credits and such ease the burden. What’s missing: All things considered, carried interest is a much better deal.)

    So, does any of this matter? Well, no. The data series ends in 2007. Household income took a major hit in the recession and then it got worse. http://articles.washingtonpost.com/2012-08-23/business/35493412_1_household-income-median-income-income-decline

    1. <a href="http://www.taxfoundation.org/news/show/27941.html“Bush Tax Cuts/b> Did Not Increase Income Inequality

      <a href="http://www.taxfoundation.org/publications/show/27939.html#_ftn3&quot;Reversal of the Trend: Income Inequality Now Lower than It Was under Clinton

      <a href="http://tiny.cc/brfil&quot;‘Buffett Tax’ and truth in numbers
      By Robert J. Samuelson, Published: January 29, 2012

  3. Todd Mason

    More urls for folks whose minds are a half-inch wide:

    http://www.philipmorris.com. “Smoking does not cause cancer.”

    http://www.rupertmurdoch.com “If God didn’t want hacking he wouldn’t have invented voicemail.”

    http://www.grovernorquist.com “I got your back, Juandos.”

    1. Nice waste of bandwidth todd

      Have no fear, your federal government is deep into wealth transfer business

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