Recently, a video titled ‘Wealth Inequality in America’ was uploaded and has gained millions of views. Based on the comments section, there are a lot of really envious people who have little to no understanding of basic economics out there. I had planned on deconstructing the video, but Lee Doren of CEI has already done the work for me as only he can. If you’re not familiar with his YouTube channel, “How The World Works,” then check it out. If the old Milton Friedman show “Free to Choose” was brought back, Mr. Doren would be a great host.

The other reason I’m not breaking down “Wealth Inequality in America” is because I’m busy licking my wounds. Last night I was thoroughly thrashed by a Scrabble Shark, who lulled me into a false sense of security by starting off the game with ‘dug,’ and my wife with ‘gone.’ Shortly thereafter my wife’s friend  busted out the Official Scrabble Dictionary (Who just randomly has that except Scrabble hustlers?), and both of them started slinging out words only medical students know. Like Apollo Creed I underestimated my opponents, and wound up dying on the mat.

This is an accurate representation of what happened to me when I got too cocky during a game of Scrabble with my wife and her friend. Like Rocky Balboa, I am now going off to Russia to train for a rematch.
This is an accurate representation of what happened to me when I got too cocky during a game of Scrabble with my wife and her friend. Like Rocky Balboa, I am now going off to Russia to train for a rematch.

With that said, here is Doren’s video. If you’re looking for the proper response to socialist claptrap, you’ll want to want to watch Wealth Inequality in America, The Critique.

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About the Author Douglas Ernst

I'm a former Army guy who believes success comes through hard work, honesty, optimism, and perseverance. I believe seeing yourself as a victim creates a self-fulfilling prophecy. I believe in God. I'm a USC Trojan with an MA in Political Science from American University.

6 comments

  1. This kid is a young punk who is wet behind the ears, but is clever enough to engage in a lot of snarky doubletalk, As soon as he invoked the name of teabagger hero Thomas Sowell, he lost most of his audience,

    1. It’s been my experience that people who use the term “teabagger” often aren’t familiar with basic economics. I’d be willing to bet you fall into that category as well.

  2. This is hardly a take down of the inequality video. I think we are all aware that income and wealth are not the same thing and Doren doesn’t refute the numbers shown in the inequality video.

    Doren moves on to consider income inequality and digs up what seem to be facts showing that income inequality is not so bad, based largely on Sowell’s flawed work. The idea that most of the *true* bottom quintile has moved into the upper 40% is laughable. Incomes can vary considerably from year to year depending on your job status, but the swing between the 15% rung on the income ladder to the 62% ladder is far, far less than the swing from the 62% rung to the 90% rung. Suggesting that the rising cost of health insurance means we are better off is… I’ll just say amusing.

    Wealth accumulation is a better indicator of the long term experience, and the U.S. has not just seen a growing gap in wealth accumulation, we are also seeing a drop in movement between brackets. This is not a good thing for the health of our democracy.

    1. If “we all know” (i.e., people other than you and me and those who follow this stuff for a living), then why did the video muddy the water between the two?

      Even if I agreed with you, Mr. Lofton, your own analysis is much less Chicken Little than the explanation given by the makers of “Wealth Inequality in America.”
      I think that’s because you understand what Mr. Doren does — the issue is much more complicated than the “rich people are evil” crowd would have us believe.

  3. There is *one* mislabeled graphic on the video, which you and Doren seem to think somehow undermines the facts or is a deliberate attempt to confuse people. Your position that people who don’t “follow this stuff”, will be confused strikes me as elitist.

    I don’t use words like “evil” to describe the wealthy because I don’t think it’s accurate. Selfish and short sighted would be my description. Unlike a lot of liberals, I don’t see radical redistribution as the solution. I acknowledge the fact that people have different levels of ability and ambition. But the system has become horribly skewed. We aren’t going to move the needle back toward a more equal distribution without putting some heat on the top end.

    Doren says that it’s fair that some people are rewarded for being “really good at providing goods and services.” Most of the people accumulating huge fortunes are doing it in the finance sector, not by providing consumer goods or services. I suspect even Tea Party members are unhappy with the amount of money that Wall Street is making. TARP was one of the flashpoints that ignited the movement.

    As far as “Chicken Little” goes, that applies when someone is warning against a non-existent danger. If the trends shown in the video continue, I expect everyone will be a lot worse off. If you want to convince people that real Marxism is a viable alternative, keep squeezing the middle class.

    1. Doren also alludes to crony capitalism, which is exactly what Big Government exacerbates.

      The idea that I’m elitist because I acknowledge that large swaths of the American population would use “wealth” and “income” interchangeably is laughable. The government knows this too, which is why officials say “cut” when they really should be saying: “we’re going into debt at a slower rate than we would like.”

      I also find it interesting that liberals (not necessarily you) often talk about corporate greed, as if “greed” doesn’t apply to people who enter into the public sector. Funny how politicians who go to Washington, DC suddenly find themselves (and their buddies) multi-millionaires within such a short amount of time.

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