2024 Hayek Lecture

The Myth of American Inequality: Assessing Income Inequality in America

When assessing income inequality in America, it is helpful to keep in mind a piece of wisdom attributed to Mark Twain: “It ain’t what you don’t know that gets you into trouble. It’s what you know that ain’t so.” Throughout his career, F.A. Hayek steadfastly believed that the free market, combined with a societal respect for property and rule of law, is the key driver of improved living standards over time. In The Myth of American Inequality, authors Phil Gramm, Robert Ekelund, and John Early go back to the postwar era and take a comprehensive look at data and perceptions surrounding income inequality and raised living standards. How do official statistics fall short of telling the real story on inequality and quality of life? In what ways have earnings, household consumption, and overall prosperity improved for today’s population compared to previous generations?

Evening Reception and Program: The Hayek Prize Winners

Please join us for an evening reception and program featuring the Honorable Phil Gramm and John Early, winners of the 2024 Hayek Prize. In a discussion moderated by MI Senior Fellow John Tierney, the authors will discuss the myths surrounding income inequality; how inequality and lack of social mobility are often overstated; and how policymakers can act on reliable economic indicators.

About Phil Gramm

Phil Gramm served six years in the U.S. House of Representatives and eighteen years in the U.S. Senate where he was Chairman of the Banking Committee. Gramm is a visiting scholar at the American Enterprise Institute. He was vice chairman of UBS Investment Bank and is now vice chairman of Lone Star Funds. He taught economics at Texas A&M University and has published numerous articles and books.

About Robert Ekelund

Robert Ekelund (1940-2023) was a professor and eminent scholar in economics (emeritus) at Auburn University, beginning his career at Texas A&M University. He is the author of more than 20 books and several hundred articles on the history of economic theory, economic history, and economic policy in the specific areas of art, religion, and regulation.

About John Early

John Early is a mathematical economist who began working as a legislative assistant to a U.S. Senator and assistant commissioner at the Bureau of Labor Statistics. He has served in senior leadership positions in global consultancies on quality and financial performance and as chief customer and strategy officer for a Fortune 100 company. He has published on topics such as improving measurements of price change, labor force dynamics, and improving healthcare.

Photo: iStock

SDGs, Targets, and Indicators in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

SDG 1: No Poverty

The issue of income inequality discussed in the article is connected to SDG 1, which aims to eradicate extreme poverty for all people everywhere.

SDG 8: Decent Work and Economic Growth

The article also touches upon the topic of improved living standards and overall prosperity, which are related to SDG 8, which focuses on achieving full and productive employment and decent work for all.

SDG 10: Reduced Inequalities

The main focus of the article is on income inequality and how official statistics may not accurately reflect the reality. This aligns with SDG 10, which aims to reduce inequalities within and among countries.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the following targets can be identified:

– Target 1.1: Eradicate extreme poverty for all people everywhere, currently measured as people living on less than $1.25 a day.
– Target 8.5: Achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
– Target 10.1: Progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article does not mention any specific indicators that can be used to measure progress towards the identified targets. However, indicators such as poverty rates, employment rates, income growth rates, and income distribution measures could be relevant indicators to track progress towards these targets.

Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.

Fuente: manhattan.institute

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