income mobility

Kayakhatch at aol.com Kayakhatch at aol.com
Thu Feb 10 14:27:44 PST 2000


I know that lbo-talk has already covered this topic but I'm writing a letter to the editor in response to a recent column by Thomas Sowell regarding income distribution and mobility. Hopefully some of you have read it. Most of it is easy to rebut. For instance he starts the piece by siting the federal reserve study by the Texas Fed. Doug has a critique of this study in one of the more recent lbo's so this is no problem. He also points out that per-capita wages have risen. This is no brainer because the distribution of the rise in wages is ignored so that he can make his point.

Where I would like some help is the allegation that there are more people in the upper 20% and that the households in the lower 20% have fewer people. So if these single people would get married or move in together their combined income would move them into the middle class. So using household income instead of individual income is misleading. The argument is that poor people are better off than the studies would suggest and their upword mobility is more than the liberal think tanks would leave us to believe. So what is wrong with Sowells use of demographics?



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