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Debunking liberal myths about poverty and inequality

June 1, 2007| By Nathaniel Ward

 

As they make the case for massive government intervention in the economy, liberals like to point to statistics suggesting an expanding gap between rich and poor.

Not so fast. It’s a bit more complicated, argues Heritage expert Paul Winfree.

“Looking exclusively at income inequality or mobility is not enough,” he writes. Other measures, like wealth, must be taken into account, as should income from government programs like welfare.

Winfree points out that even though some measures indicate expanding income inequality, the lot of the nation’s poorest citizens has actually improved in recent years.

For example, he cites a new report showing that “between 1991 and 2005, the average annual income of the poorest households with children increased by 35 percent, adjusted for inflation.”

Nathaniel Ward is the Editor of MyHeritage.org—a website for members and supporters of The Heritage Foundation.