McClaughry: The debate over income inequality
McClaughry: The debate over income inequality | Opinion | reformer ... Brattleboro Reformer
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The Myth of American Inequality: A Report on Income Inequality in the United States
Introduction
The issue of income inequality has long been a focal point for advocates of socialism. In recent years, the publication of “Capital in the Twenty First Century” by French economist Thomas Piketty reignited the debate. However, the use of “income inequality” as a measure of economic disparity has faced criticism for not considering government transfer payments and taxes.
The Sustainable Development Goals (SDGs)
- Goal 1: No Poverty
- Goal 10: Reduced Inequalities
Research Findings
- Phil Gramm, a former professor of economics and member of Congress, conducted research with experts Robert Ekelund and John Early to analyze official economic data from the Census Bureau and the Bureau of Labor Statistics.
- They discovered that the data from these agencies did not provide a comprehensive picture of income inequality in the United States.
- The Census Bureau only counted $0.9 trillion of the $2.8 trillion in government transfer payments as income, excluding programs such as refundable tax credits, food stamps, Medicare, and Medicaid.
- The measurement of household income also did not consider the impact of taxes, with Americans paying $4.4 trillion a year in federal, state, and local taxes.
- When all transfer payments and taxes were accounted for, the measure of income inequality in America was significantly reduced.
- The ratio of income for the top 20 percent of households to the bottom 20 percent was found to be 4.0 to 1, rather than the 16.7 to 1 ratio reported by the Census Bureau.
Implications and Recommendations
The findings of this research have important implications for understanding income inequality in the United States. It is crucial for the government to report income inequality accurately by considering all transfer payments and taxes.
While the book, “The Myth of American Inequality,” offers debatable policy recommendations, it emphasizes the need to promote self-sufficiency through reshaping policies and programs. The authors argue that providing subsidies alone does not effectively address income inequality and can often perpetuate dependency.
Conclusion
It is essential to approach the issue of income inequality with a comprehensive understanding of the data. The research by Phil Gramm and his co-authors sheds light on the limitations of current measurements and calls for a more accurate portrayal of income inequality in the United States. By focusing on self-sufficiency and promoting policies that empower individuals, we can work towards reducing income disparities and achieving the Sustainable Development Goals.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 1: No Poverty | Target 1.4: Ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources | Indicator not mentioned in the article |
| SDG 10: Reduced Inequalities | Target 10.1: By 2030, progressively achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average | Indicator not mentioned in the article |
| SDG 10: Reduced Inequalities | Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality | Indicator not mentioned in the article |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
The SDGs that are connected to the issues highlighted in the article are SDG 1: No Poverty and SDG 10: Reduced Inequalities.
2. What specific targets under those SDGs can be identified based on the article’s content?
Based on the article’s content, the specific targets that can be identified are Target 1.4 under SDG 1 and Target 10.1 and Target 10.4 under SDG 10.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
No indicators are mentioned or implied in the article that can be used to measure progress towards the identified targets.
The article discusses the issue of income inequality and the need for accurate reporting of income inequality. It highlights the debate surrounding the measurement of income inequality and the exclusion of certain government transfer payments and taxes from official measurements. However, it does not provide specific indicators that can be used to measure progress towards the identified targets.
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: reformer.com
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