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The Myth of American Inequality: How Government Biases Policy Debate

Cato Podcast

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Is the Census Bureau More Open to Alternate Measures of Inequality?

The Census Bureau is continuing to follow methods that they used 60, 70 years ago when they first began putting these data together. The official census measure of income shows a difference between the top quintile and the bottom fifth as a factor of 16.7 times greater. But if you add the transfer payments for the low end and taxes for everybody that difference is only 4 to 1 so they overstated by a factor of more than 400%.

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