Mark J. Perry, full professor of economics University of Michigan, Flint, shared a smart piece on Seeking Alpha (account needed) today on income inequality. I've written about income inquality before.
In short, the phrase income inquality makes for great political rhetoric precisely because almost all have an innate sense of 50-50 fairness. That said, income inequality is a bogus concept.
Anyway, Mark Perry shared this table which pulls back the curtain from all that hot air political rhetoric.
What jumps out is 63% of households in the poorest fifth of America do not work. Well, it should be clear that with work comes income.
As can be seen, Americans become (moving toward the highest fifth), richer when they work. The richest households are those where almost everyone in the household works.
As one moves toward richer households, one finds households consisting mostly of marrieds who are middle age with at least a bachelor's degree.
Of course, when guys like Obama take to the podium decrying income inequality, they fail to talk about the effects of rampant immigration upon working age population. Also, guys like Obama fail to talk about how much welfare those in the lowest fifth receive.
To see the effects of immigration on wages, read YET ANOTHER EMPEROR'S NEW CLOTHES JOBS REPORT DURING THE GREATEST DEPRESSION OF ALL-TIME and SOPHIE'S CHOICE OF CAPITAL OR LABOR. A FREE-MARKETS LIBERTARIAN BECOMES AN ANTI-CAPITALIST AND PERPETUATES AN ECONOMICS MYTH.
Also, Obama fails to mention that GDP has not grown during his presidency, but in fact has fallen almost every quarter save a couple way back in late 2009 and early 2010. To see this, read THE SECRETS OF AUTOMATED CLEARINGS, GDP AND THE ECONOMY. RECOVERY? WHEN?