"Study Finds Income Inequality Is Permanent" by Allison Brito at the National Memo

[applegrove]

Study Finds Income Inequality Is Permanent

by Allison Brito at the National Memo

http://www.nationalmemo.com/study-finds-income-inequality-is-permanent/#.UVNuafuC-H0.reddit

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A recent Brookings Institution study reveals that the disparity between rich and poor is larger than ever, and is only expected to grow unless proper reforms are made. The paper, titled “Rising Inequality: Transitory or Permanent? New Evidence from a Panel of U.S. Tax Returns,” analyzes the growing and permanent inequality between rich and poor in the United States by looking at thousands of confidential tax returns to examine the progression of household income over the course of 23 years.

Brookings Papers on Economic Activity co-editor Justin Wolfers said of the findings, “It’s actually the rich are getting richer and staying richer. The poor, poorer and staying poorer. Now the tax system is somewhat helpful here. Yes, we have progressive taxes in the United States, and were it not for that, the authors show us, income inequality would have grown by more.”

The phrase “the rich are getting richer and the poor are getting poorer” has never been more true, and stating that the middle class is shrinking is not just political rhetoric but a matter of fact that can have serious consequences on the economy. This isn’t the first study to confirm the growing gap in inequality, but what makes this Brookings study so compelling is its rare method — it is not a survey, but instead an analysis based on over two decades’ worth of actual tax data.

During the 2012 presidential election, Mitt Romney called the debate on income disparity a “bitter politics of envy,” adding, “I think it’s about class warfare.” What Romney failed to see were the serious implications that growing income inequality can have on the economy and society. When individuals and households can’t afford to purchase commodities, it affects businesses and stunts economic growth. The data presented in this study show that the attempt to close the inequality income gap is not an attack on the wealthy, but instead entirely necessary and in the best interest of society as a whole.

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[rocktivity]

1. Candidate for this year's "You Call This NEWS?" Award

That was the whole point, dont'cha know...


rocktivity

[Sherman A1]

2. K&R

Thanks for posting.

[L0oniX]

3. Call Miss Cleo. "Arrrr I tell u all you already know".