Income inequality raised! Blame the Census Bureau

The Census Bureau has reported income distribution in the USA for 2011. There is a number of posts and comments on increasing income inequality. Before writing writing on inequality one should first learn some definitions and measuring procedures. The reason behind the reported rise in (household) Gini ratio is not the change in income inequality per ce, but new population controls introduced after the 2010 census. All statistical agencies in the US (and supposedly in other countries as well) are famous for producing time series incompatible in time. Due to change in definitions, survey procedures and coverage the time series for inflation (and thus real GDP), unemployment, productivity, and so on, are not continuous. This is like to change from mph to km/h and back every five to ten years and then average the speed. Interestingly, all  these agencies are not guilty since they openly describe this incompatibility in their documents. These are the commenters who are careless.

In the CB's report for 2011, the Gini ratio for individuals has jumped to 0.510 in 2011 from 0.503 in 2010. (  It was near 0.503 through the 2000s. ) This would be the most dramatic jump in income inequality in the USA since  the start of measurement in 1947, if a not a  pure artifact.
If you would like to know the truth do not trust experts! Dig into raw data and documentation.

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