The Myth of American Inequality

by Phil Gramm

For children reared by parents in the bottom income quintile, 93 percent grew up to have more real income than their parents. Fewer than 7 percent did not. Many of these children and their parents worked hard to attain greater levels of education and acquire skills that allowed them to increase their earnings. But even for the considerable number who failed to complete high school or acquire additional skills, their incomes rose as a by-product of strong economic growth. These results are an extraordinary testament to the dedication of many parents, the efforts of the new generations, and the power of a growing American economy. In the three central quintiles, a substantial but slightly smaller average of 86 percent of all adult children lived in families that had a higher real income than their parents did.