🚨THREAD🚨 Today, we released a paper with Christopher Wimer & Sophie Collyer at @CpspPoverty, and Xavier Jaravel at @LSEnews.
Key takeaway: 3 million more ppl would have been considered in #poverty in 2018 if we account for inflation inequality. 1/ bit.ly/2ChAvUk
Key takeaway: 3 million more ppl would have been considered in #poverty in 2018 if we account for inflation inequality. 1/ bit.ly/2ChAvUk
In a supposed strong economy, how did we get here? Skyrocketing inequality in recent decades—driven almost exclusively by soaring incomes for the wealthiest Americans—has undermined the strength of our economy and our democracy. 2/
New research shows that income inequality ITSELF is causing prices to rise more quickly for people at the bottom of the income distribution than at the top, a phenomenon known as “#inflation inequality.” 3/
You heard that right. Because the rich have so much money, many companies are innovating everyday goods targeted for the wealthy, keeping those prices more competitive, and therefore lower than prices on goods for lower-income folks. 4/
So why does that matter? We’re underestimating the true levels of income inequality & poverty, and that has a direct impact on people. Both are measured using uniform inflation rates that don’t account for the faster price increases faced by poorer & middle-income households. 5/
Because income inequality is causing prices to rise faster for low-income people, there were likely 3.2 million MORE people in poverty in 2018 than current metrics suggest. That’s more than the *entire population* of Iowa.
You can read more here: bit.ly/2ChAvUk 6/
You can read more here: bit.ly/2ChAvUk 6/
