How Bad Is the United States at Reducing Income Inequality?

Why does nixing senior citizens from the analysis change the outcome so dramatically? Milanovic and Gornick note that Americans older than 60 are much more likely to have high market earnings compared with their peers overseas. In other words, they don’t retire, possibly because Social Security benefits aren’t exceptionally cushy. The fact that more of our elderly are working instead of living off the welfare state makes our market incomes look more even across the board, since we have fewer grandparents who are living their lives while earning nothing. When you cut all of those Americans who plan to die at their desks out of the calculation, and just focus on people in their prime working years, it becomes clearer that U.S. incomes really are unusually disparate.

– Slate

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