THE most revealing graph in a recent New Yorker post on inequality in America is this one:
The figure and its data come from Janet Gornick, the director of a CUNY research centre on international inequality. The dark-blue lines tell a now-familiar tale: America boasts the highest post-tax-and-transfer income inequality of any highly developed country in the world. The metric at play is a number between 0 and 1 known as the Gini coefficient. In a hypothetical country with a coefficient of 0, everyone has exactly the same income, while a nation with a coefficient of 1.0 is home to one fat cat who takes everything while everyone else earns nil. At 0.42, America’s level of post-tax-and-transfer inequality outranks Israel, Britain and Canada, and dwarfs the figures in Japan and Scandinavia.
Ms Gornick’s light-blue...Continue reading