Saturday, January 14, 2012
Are the poor getting poorer?
People often say that "the rich are getting richer while the poor are getting poorer." Economics professor Steve Horwitz explains why in the United States, this characterization is largely a myth.
Real income levels of the poorest 20 percent of Americans have actually risen over time. Further, the individual households that comprise the bottom income bracket do not stay the same. The majority of Americans in the poorest 20 percent become wealthier over the course of their lives. Want to learn more? Check out these resources:
• Op-ed on Inequality, by Prof. Horwitz: http://www.ajc.com/opinion/data-overlook-upward-mobility-816832.html
• Cox. W. Michael and Richard Alm. Myths of Rich and Poor: Why We're Better Off Than We Think, New York: Basic Books, 1999.
• Reynolds, Alan. "Has U.S. Income Inequality Really Increased?" Policy Analysis 856, Cato Institute, January 5, 2007. Available online at: http://www.cato.org/pubs/pas/pa586.pdf
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