A new animated video by Alvarism explains the complex topic of income distribution with simple terms in less than seven minutes. This knowledge is incredibly important because falsehoods about income distribution are currently driving deleterious tax policies. Even worse, some of the most powerful and influential people in the world believe the income inequality myth. The video corresponds to section 3.2 of the book Economic Sovereignty: Prosperity in a Free Society, and a public briefing on the topic delivered by Alvarism in the U.S. Senate on May 4th, 2015.
In the video:
- The five statistical errors that fooled people into believing the income inequality myth:
- Cost of living and purchase power parity
- Part-time labor and full-time equivalents
- Counting all taxes
- Counting all welfare
- Households vs. Earners
- Common misconceptions:
- Income is not wealth. Wealth is surplus. Income is the only pathway to wealth a poor person has.
- Income distribution statistics only capture yearly snapshots of lifelong careers. Most people will earn high income for a few years at some point in their careers.
- Good inequality:
- Matches income to age, experience, and productivity
- Matches income to industrial and career value for its free-market worth to society