Kerby Anderson
Everything you know about income inequality, poverty, and other measures of economic well-being in America is wrong. Former senator Phil Gramm was on my program to make that case recently. He is the co-author of the book, The Myth of American Inequality: How Government Biases Policy Debate. I might mention that his co-authors hold very different political views than he does, but they do agree that we need to get the facts right before we have a policy debate about economic issues.
The myth of American inequality began back in the late 1940s when the Census Bureau excluded all income that was not paid in the equivalent of cash. That simplification made sense back then but made less sense when the 1965 War on Poverty expanded government benefits. Medicare, Medicaid, Food Stamps, and hundreds of other government benefits are not counted as income to the recipients.
Another popular myth is that income inequality is growing. When all the transfer payments just mentioned are counted as income to the recipients and all taxes are counted as income lost to the taxpayer, income inequality is lower today than it was 70 years ago.
As you might imagine, the bias we just mentioned also affects the official measure of well-being. For example, the government does not measure 88 percent of all transfer payments the poor receive when calculating the poverty rate. If those payments are included, then the poverty rate in 2017 would be 2.5%. For comparison, the official poverty rate that year was 12.3%.
The authors also make specific recommendations for dealing with some of the reasons for income inequality. If we are going to have a productive policy debate about these economic issues, we need to listen to these authors and get the facts right.

Kerby Anderson
Let me begin by wishing you a Happy New Year. At the start of this New Year, I wanted to pass on some advice. In previous commentaries, I have talked about the value of using this time of year to change something in your life. There is nothing magical about using January 1 as a start date, but why not use it to improve yourself?
First, I would recommend you pick just one thing to change. If you try to change too many things at once, you are probably not going to succeed. And I would also recommend that you make it a specific, concrete goal that you write down. The more specific you are, the greater likelihood you will be successful.
Second, aim low. In previous New Year’s commentaries, I have quoted from Tristan Taylor who encourages people to “strive for mediocrity.” Don’t pick something that is too big to achieve. Start small. After all, you are where you are right now due to dozens of small changes or compromises you made in the past.
I realize that motivational speakers challenge us to strive for excellence. We should pick a goal that challenges us. But also pick a reasonable goal so we can see and enjoy some level of success. Short-term success can lead to greater success.
Third, expect difficulties. It seems like the moment you start a diet, people around you start inviting you to banquets and all-you-can-eat buffets. The day after you join a fitness club, your life gets busy, and you cannot find time to get to the gym. The moment you decide to do a daily quiet time, your boss asks you to come in earlier for work.
Fourth, accept failure. You might find that for every two steps forward you take one step back. Sometimes you even take two steps back. This is where dedication and perseverance come into play.
Finally, plan a reward. This gives you a goal to achieve and a reward for your dedication. This is the first day of the year, so go for it.