Monday, November 07, 2011

Income Inequality Over Time

People earn higher incomes as they get older.  Many of the people in the bottom income brackets do not stay there.  Economists have known this for years.  HERE is current information regarding mobility of Americans through the income brackets.  

Short version?  58% of households in the lowest quintile move up within ten years.  57% of households in the highest quintile fall lower within ten years.  Substantial other movement between all brackets.  The St. Louis Federal Reserve Bank just came out and said that comparing income quintiles as if they are static (which you have to do in order to talk about the increasing gap between the "rich" and the "poor") is "a proverbial apples-to-oranges comparison".  We know that, but coming from the "government" it's harder for a redistributionist to ignore.  Maybe. 

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