From Thomas Sowell’s Intellectuals and Society

“Although such discussions have been phrased in terms of people, the actual empirical evidence cited has been about what has been happening over time to statistical categories – and that turns out to be the direct opposite of what has happened over time to flesh-and-blood human beings, most of whom move from one category to another over time.  In terms of statistical categories, it is indeed true that both the amount of income and the proportion of all income received by those in the top 20 percent bracket have risen over the years, widening the gap between the top and bottom quintiles.  But U.S. Treasury Department data, following specific individuals over time from their tax returns to the Internal Revenue Service show that in terms of people, the income in 1996 rose 91 percent by 2005, while the incomes of those particular taxpayers who were in the top 20 percent in 1996 rose by only 10 percent by 2005 – and those in the top 5 percent and top one percent actually declined.”

“While it might seem as if both these radically different sets of statistics cannot be true at the same time, what makes them mutually compatible is that flesh-and-blood human beings move from one statistical category to another over time.  When those taxpayers who were initially in the lowest income bracket had their incomes nearly double in a decade, that moved many of them up and out of the bottom quintile – and when those in the top one percent had their incomes cut by about one-fourth, that may have well dropped them out of the top one percent.  Internal Revenue Service data can follow particular individuals over time from their tax returns, which have individual Social Security numbers as identification, while data from the Census Bureau and most other sources follow what happens to statistical categories over time, even though it is not the same individuals in the same categories over the years.”

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