Wednesday, March 24, 2021

WSJ maintains that income inequality is not getting worse if you look at everything from Census

 

straw man at Baltimore Penn Station, 2011

Phil Gramm and John Early have an interesting op-ed in the Wall Street Journal questioning conventional wisdom on income inequality and Census reports.

They present a graph of annual Gini coefficients after correction for government benefits paid to lower income people and taxes collected, which they maintain shows that inequality is decreasing.

But the pandemic would obviously have distorted things in 2020, as lower income workers bore a disproportionate share of the sacrifices (including “people of color” and the like).

Accumulated wealth would also be a factor to consider.

And I personally think that cryptocurrency could start to affect this graph.  (Look at Tyler Mowery’s Twitter account, for openers.)  Think about the idea that someday we could convert “social credit” to wealth on the blockchain, if we wanted to.  But, ironically, that would contradict “critical theory”.

I worked for Census in 2010 (diennial) and 2011 (Current Population Survey).

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