Courtesy of Mish.
The McKinsey study Poorer than Their Parents? offers a new perspective on income inequality over the period 2005-2014.
Based on market income from wages and capital, the study shows 81% of US citizens are worse off now than a decade ago. In France the figure is 63%, Italy 97%, and Sweden 20%.
The numbers for the US and France differ radically once transfer mechanisms like food stamps and Obamacare subsidies are taken into consideration.
Extent of Flat or Falling Incomes
The first set of numbers is easily believable. But the second?
Who believes 98% of the US is better off after transfer payments are taken into consideration?
The study also shows that 90% of French are better off than in 2005 taking into account government giveaways.
