Are the Poor Getting Poorer?

People often say that "the rich are getting richer while the poor are getting poorer." Economics professor Steve Horwitz explains why in the United States, this characterization is largely a myth.

Real income levels of the poorest 20 percent of Americans have actually risen over time. Further, the individual households that comprise the bottom income bracket do not stay the same. The majority of Americans in the poorest 20 percent become wealthier over the course of their lives. Want to learn more? Check out these resources:

• Op-ed on Inequality, by Prof. Horwitz: http://www.ajc.com/opinion/data-overl...

• Cox. W. Michael and Richard Alm. Myths of Rich and Poor: Why We're Better Off Than We Think, New York: Basic Books, 1999.

• Reynolds, Alan. "Has U.S. Income Inequality Really Increased?" Policy Analysis 856, Cato Institute, January 5, 2007. Available online at: http://www.cato.org/pubs/pas/pa586.pdf

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[CYI3ERPUNK]

love this channel, but this video is old data and leaves WAY too much out, it basically does exactly what it accuses the "poor vs rich" data of doing

not cool LearnLiberty

account for inflation, cost of living, and debt percentage of total wealth/income

[Robert Wiggins]

it's adjusted you twat

[john smith]

when you go to the gas pump you help the rich get richer and when you can barley afford gas it causes you to be poor

[diskpanic]

By definition, they are richer... But if you plan on making only $800 a month, then you are an idiot.

[diskpanic]

There is no such thing as "inflation". That's a side effect of another problem going on in the United States: Currency Devaluation. We know that it's monetary devaluation, because our currency has lost value against competing currencies. Why don't you want to talk about that?

And debt percentage is not constant across all income brackets. Debt is something stupid people do to insure they get back to being poor.

[Bruce Wayne]

The fact is, however, that inequality has risen. This is primarily due to pro government policies. The less the government interference and welfare state, the less the Gini, ask Singapore, South Korea, Hong Kong, Taiwan, Switzerland, and China (yes, only 22% of china is government, compared to 38% in the US. This is why it has massive growth rates).

[Bruce Wayne]

Since when did JFK have any credibility over the greatness of societies? He was just a random president who got famous off getting shot.

[Bruce Wayne]

Inflation -- Thank the government

Cost of living -- Cheaper, check out their other vid XD

Wealth -- Increased

NOw this is all in real income too. They have a newer vid with better data.

[Bruce Wayne]

They do not disable shit.

Everything here is adjusted for inflation.

[Bruce Wayne]

>> Has a nice phone

>> Has a coat

Blames the rich.

[Stephen Newton]

This 'income mobility' argument is disingenuously used to counter evidence that social mobility is very low in USA compared to other developed countries and that the American Dream is dead.

Yes incomes rise as careers progress (skills and experience acquired enhance employees value to employers) and the economy grows.

But the new poor Horwitz talks of are the kids of the old poor, who have remained working class and not become middle class. So life chances remain defined by birth right.

[TheUnderNetworkVideo]

I fucking hate how LearnLiberty stops their dislikes at a certain number and fools everyone into thinking that they actually like their videos.

YouTube should block the dislikes and hide them away completely if they choose to disable the like meter.

I also hate how they also try to trick us into thinking that the world is so fucking perfect,which in fact is a complete opposite.

I think LearnLiberty is just spreading out propaganda.