Earlier this week, David Leonhardt of the Upshot summarized new work from economist Stephen J. Rose as follows: "Income inequality has not actually risen since the financial crisis began." That finding runs counter to conventional wisdom that the rich have gotten richer while the poor have gotten poorer (or, at least, no richer) in recent years. It also stands in contrast to other high-profile research that's reached the opposite conclusion.
Turns out there's a fine explanation for the discrepancy: Rose says looking at the years 2007 to 2009, in addition to bounce-back years of 2009 to 2012, presents a more complete picture. But income inequality, however you measure it, is only part of the story. This week the Urban Institute released an interactive data tool that presents an arguably bigger picture by laying out how wealth inequality in America has increased over the last 50 years—especially along racial and ethnic lines.
[For more of this story, written by Tanvi Misra, go to http://www.citylab.com/work/2015/02/instead-of-the-income-gap-we-should-be-talking-about-the-wealth-gap/385587/]
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