The Myth of Income Inequality

By David A. Milstein, TheCollegeConservative.com January 13, 2012     For years, the Left led by President Obama and aided by the robots in the media have continued to say there is a growing income gap in America. They say the rich are getting richer and the poor are being left behind. President Obama recently stated in his weekend address to the nation, “Over the past three decades, the middle class has lost ground while the wealthiest few have become even wealthier.” The recent flurry of news stories came as a result of a new Congressional Budget Office (CBO) report that concluded: “From 1979 to 2007, real (inflation-adjusted) average household income… for households at the higher end of the income scale rose much more rapidly than income for households in the middle or at the lower end of the income scale.”Not surprisingly, the Left jumped all over the airwaves to promote the report and argued for the need for higher taxes and redistribution. Yet some of the conclusions from studies like the CBO report can be extremely misleading and perpetuate fallacies about income and upward mobility in America. First, the broad claims are true that categorically the top 1% continue to have higher income. The top 1%, like all levels, will continue to grow with technology, innovation and investment. We should be very worried if the opposite happened. Yet the...

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