The 4 to 1 Difference in Income Inequality

Cato Institute co-founder John Early talks about the myth of American inequality and how government biases policy debate. He says income data that census uses for income inequality is used to measure poverty. And because transfer payments are only one third of them are included in the poverty calculations when you add the other two thirds poverty would be between 1 and 2% rather than around 12%. So it cuts it by almost a factor of 10.