Census shows that Democrat politicians have been lying about the economy
The Census Bureau released the 2018 Income and Poverty in the United States report. The news is good.Democrat candidates for President have been saying that only the rich have benefited from the Trump economy, but this data shows that the biggest beneficiaries were in the bottom 80 percent. The reduction in the poverty rate, especially childhood poverty is good news.
Between 2017 and 2018:
· Real median family income up 1.2%
· Real median earnings up 3.4%
· Full-time, year-round workers up 2.3 million
· Poverty rate down from 12.3% to 11.8%; childhood poverty fell faster; net 1.4 million people left poverty
· Income in the bottom 80% of households was up significantly, only the top 20% of households saw an income decline, as a result, the Gini coefficient (a measure of income inequality, higher numbers mean more inequality) fell from 0.489 to 0.486
· Usually when the Gini index falls, incomes go down for everyone; it’s been 20 years since we’ve seen this big a decline in the Gini index when incomes went up
The news coverage didn’t seem to jibe with the numbers. The real good news about income, earnings, employment and poverty was overlooked entirely to focus on the more abstract Gini coefficient. When income and employment go up, and poverty goes down, that’s unalloyed good. The Gini coefficient is more complicated. It mainly fluctuates based on how financial markets are doing, because top earners depend largely on investments, and those are more volatile than the salaries that underpin middle-class incomes. Moreover many top earners compensation is dependent on financial markets—executives with stock options and profit shares, Wall Street professionals with market-dependent bonuses, business owners paid out of profits.