As has been widely reported, the latest U.S. Census Bureau statistics recently confirmed that America is experiencing the highest concentration of wealth since the Bureau began tracking this data 40 years ago. Now, the top 20% of all earners account for 50.4% of all U.S. wealth, while the bottom 20% earn only 3.4% of total U.S income. This has, naturally, led to outrage in some circles, looking to stem inequality wherever it rears its ugly head.
In “Out of It” (Townhall.com, 11.9.07), Paul Greenberg suggests that we should not be concerned with this Census data because the mean annual incomes of both the top fifth and the bottom fifth of all households rose in 2005. In his view, “What does it matter to me if other folks’ income is up so long as mine increases, too?”
He goes on to say: “Whenever figures likes these from the Census Bureau come out, we’re all supposed to be disturbed about the growing gap between rich and poor, or even upper-middle and lower-middle, but I’m still waiting for someone to explain why. And not just repeat vague pieties about the need to keep everybody roughly as rich, or rather as poor, as everybody else.”
I would respond that Greenberg has a point — we should not focus solely on how much money everyone is making. Instead, we need to focus on the conditions that lead to income inequality. Are people in the bottom 20% of all earners from households where good schools, good jobs, and health care are adequately available? I would say not. Were those in the top 20% of earners given an equal playing field for realizing success? Do upper and middle class youth have more access to capital, test preparation, and transportation alternatives than their lower class counterparts? I would say so.
It is time to stop pretending that income inequality happens in a vacuum and that all those in the upper income levels are “entrepreneurs and investors who made the growth possible.” Rather, some are just lucky.
Lonny Stern | Communications Director
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