Record-High Levels of Inequality?

From Robert Frank, at Wall Street Journal, "The Myth of ‘Record-High’ Inequality":

We hear more and more about our country experiencing “record levels of inequality.”

The gap between the rich and poor, we hear, is higher than ever. A new poll from the Washington Post and ABC News shows that 61% of Americans believe that the gap between “how much money wealthy people have” compared with the rest of the population is larger than it’s been historically. Only 31% believe it’s the same. Fully 61% also believe the gap between the wealthy is “much larger” than it’s been historically.

Unfortunately, the survey respondents and much of the media is wrong.

Inequality is clearly at high and (to many) disturbing levels. Over a 30-year period it’s undoubtedly gone up.

But by the latest measures, inequality is actually lower than it was four years ago, and well below its recent highs. While many people cite inequality as a cause for the recession and joblessness, inequality was actually higher during the boom times of 2007 and 2008, when unemployment was under 5%.

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