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Gini Coefficient and US

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11/12/2011 8:23:09 PM
Posted: 6 years ago
So for those of you don't know, the Gini coefficient is the level of income inequality in a nation. The Gini coefficient is higher in America then almost any developed nation (Singapore and I believe Mexico are higher).

My question, wouldn't the US's high birth rate compared to other developed nations necessarily increase the gini coefficient since those in their teens tend not to have an income or a low income. Younger people also get paid less then older people.
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11/15/2011 2:27:41 PM
Posted: 6 years ago
Gini Coefficient...

Um, I think you ought to look at demography....

More racially homogenous nations are more equal because people are more equal...

More racially diverse nations are mroe unequal because people are more unequal...

Of course, some policies affect Inequality Statistics too...

High MTRs (Marginal Tax Rates) for top incomes are a classic example of this.

For years, the US had a top MTR in excess of 70%, and inequality was seemingly much lower. However, that was largely a statistical blunder, not actual inequalty...

Because of the high MTRs, the wealthy hid a lot more of their income and made them seem less wealthy, and inequality SEEMED lower...

Reagan lowered top MTRs and the wealthy shielded a lot less income and Inequality soared... although, it didnt really... It was just a weakness of measures of inequity

So, be weary of these inequality indexes and such
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