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Debunking the Myth of "Income Inequality"

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By Gary D. Halbert Halbert Wealth Management I ran across a very good column in The Wall Street Journal last week which debunks the widespread myth of an “income inequality” crisis in the US. The article is written by Phil Gramm, former Texas Senator and former Chairman of the Senate Banking Committee for several years and John Early, a former Commissioner at the US Bureau of Labor Statistics. Their column challenges the widespread belief that we have an income inequality crisis in America and discredits how the US Census Bureau massages and analyzes the data it collects on US citizens. Based on their facts and analysis, we not only don’t have an income inequality crisis in this country but, more importantly, the income gap is actually shrinking. This news may be hard to contemplate since liberals and the mainstream media have been pounding this income inequality crisis into our heads for many years. As Gramm and Early point out, it all comes down to a few assumptions on how we calcula