Saturday, May 24, 2014

Government Policies Favor the Rich and Leave More Poor in the USA than in other Developed Nations

Here are two graphs from an interesting paper which indicate that the U.S. government does less than governments of other developed countries to reduce inequality and to reduce poverty.
The Gini coefficient in theory varies from zero to one. It is a measure of the concentration of income, and the higher its value the more of a country's income is appropriated by its affluent. Government programs such as progressive taxation of higher incomes, transfers to people in need of income support, strong minimum wage laws, etc. can make the distribution of income more equal.

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