Obama's Class Warfare Argument

It is the primary argument of Barack Obama and the Democrats that America's primary economic problem is growing income inequality.  The response of many conservatives has been that the growth of income inequality is a "myth," and that any mention of the topic is class warfare.

The left's view is the rich have grown richer while middle-class incomes have stagnated. This emphasis on economic discontents is purposeful. Any political coalition for income redistribution that does not include middle-income voters will fail. So the message has been: the rich are cheating you.

The reality is less ideologically satisfying for all concerned. Economic inequality among American households has increased in recent decades — but one of the main causes is a shift in the composition of households themselves.

"Married-couple households," writes economist Terry Fitzgerald of the Minneapolis Federal Reserve Bank, "have much higher incomes than other household types, and there has been a large decline in married-couple households. ... As an extreme but illustrative example, consider what would happen if one-half of all married couples were to divorce next year. Median household income would plummet as each higher-income married couple household is dissolved into two lower-income households — the same income is spread across more households."

Even by the household measure, middle-class incomes have not been stagnant. Over the last 30 years, the largest income gains have come for the wealthiest 20% of households — about a 65%  increase, adjusted for inflation. But middle-class incomes have also risen about 40 percent. "The outsized gains of the rich," says Fitzgerald, "do not mean that Middle America stagnated."

Obama's class warfare lies are a myth.  He lies and the main stream media won't call him on it.  They help fuel the class warfare.  Obama's only chance of reelection is class warfare.  All his programs have failed.

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