How Unequal Is Income Distribution in the U.S., Really?
New York Times columnist Thomas B. Edsall evaluates the recent conversation on the purportedly exponential growth of income disparity between the "superrich", the regular-old rich and the rest of us. The most commonly cited current evidence is the Saez-Piketty study, which reports that
"From 1970 to 2010, . . . the share of total market income going to the top one percent more than doubled, from 9.03 to 19.77 percent. The share going to the top 0.1 percent more than tripled, from 2.78 percent to 9.52 percent; and for the top 0.01 percent, it nearly quintupled from 1.00 percent of the total to 4.63 percent."
Conservative journalist/blogger James Pethokoukis, however, has been raising the profile of other, more nuanced research that demonstrates a disparity in real income less extreme than the "market income" figures touted by liberals as proof of a shamefully inequitable economic system. Such "real income" includes non-taxable income, such as employer-provided health insurance, Medicare, Medicaid, Social Security and other government sanctioned benefits, which help "level the economic playing field", so to speak.
Aha! Claims of rampant inequity have been grossly exaggerated. The liberal agenda has been exposed right before our eyes! Chalk one up for the Right!
But wait. What (better: who) has been the moderating factor in this equation? Oh yeah, the government. Mr. Edsall insightfully points out the contradiction:
"The driving force behind lessened inequality that Burkhauser posits stems from government intervention, combined with pressure on the private sector to provide health care benefits — the very things the right objects to."
As the saying goes, we can't have our cake and eat it too. The fact is that our government has played a vital role in helping the lower socioeconomic "classes" (when will we find a more civilized synonym for that term?) survive amidst an economic system strongly favoring the super-wealthy. We the 99% have the power via our government to effect policies that make the American Dream an achievable reality for the vast majority of our citizens. Why squander it?
I wish it were that simple Matt. I'm not sure how government (left or right) has helped the lower class survive when you've not got one in two people in the U.S. in or at risk of falling into poverty according to the last census. We now have the highest rates of poverty since Johnson's War on Poverty almost 50 years ago only it is now actually harder than ever to get out of poverty. Our ability to "effect change" for others is also seriously impaired when both parties are controlled by the financial interests of the 1%. I'm not one for hyperbole but I really feel that our democracy is at a cross roads with these issues. Thanks for bringing up this topic. Much love bro!
ReplyDeleteHi Nick!
ReplyDeleteI believe we have the power to influence public discourse and to sway public opinion, if only we will address the facts and stop playing party politics. If we could educate the masses with truth (reality) and eliminate the entrenched ideological polarization, then we'd have the power to hold our elected officials accountable and to force candidates to articulate intelligent positions. Unfortunately, polarized rhetoric is where the big bucks are to be made. The news media will always be hellbent on exaggeration, spin, and playing on our fears and prejudices. Would that this not be so.