November 5th, 2011

NewFace

Shikha Dahmia on Income Inequality

Don't Mind The Gap

I hate to be the bearer of good news just as the Occupy Wall Street movement is gathering steam, but protesters can stop worrying about rising inequality and go home. New evidence suggests that the super-rich got hit by the recession much harder than the rest of the 99 percent. This doesn’t mean that they will be filing for food stamps any time soon. But it does mean that, contrary to progressive mythology, natural market forces might be restoring some semblance of cosmic justice.

Full article here.

Greedy Capitalists Hogging Wealth Are Not Causing Income Inequality

For all those interested in finding out the other half of the income inequality story that last week’s CBO study does not tell, here is some fascinating stuff from Political Calculation, a wonkish blog.

It produces three charts, displaying the Gini Coefficients of individuals, families and households in America from 1994 and 2010 that show that we can safely dial down the CBO-triggered gloom-and-doom that the capitalist system is generating vast disparities of wealth. (This data is superior to the CBO’s in at least one major respect: It is more current because it goes up to 2010. The CBO’s ends in 2007 which means that it does not take into account the post-recessionary losses that the much-reviled top 1 percent experienced.)

The charts show that although there is a slight increase in income inequality for U.S. families and households, there is absolutely no significant change in the inequality among U.S. individual income earners from 1994 through 2010.

Full article here.