The real reasons for income inequality

13 February 2012

The Wall Street Journal 21 January 2012
America is coming apart. For most of our nation’s history, whatever the inequality in wealth between the richest and poorest citizens, we maintained a cultural equality known nowhere else in the world—for whites, anyway. …But there’s a problem: It’s not true anymore, and it has been progressively less true since the 1960s.People are starting to notice the great divide.

Here’s what happened to America’s common culture between 1960 and 2010.

Marriage: In 1960, extremely high proportions of whites in both Belmont (higher – middle income) and Fishtown (lower income) were married—94% in Belmont and 84% in Fishtown. In the 1970s, those percentages declined about equally in both places. Then came the great divergence. In Belmont, marriage stabilized during the mid-1980s, standing at 83% in 2010. In Fishtown, however, marriage continued to slide; as of 2010, a minority (just 48%) were married. The gap in marriage between Belmont and Fishtown grew to 35 percentage points, from just 10.

Single parenthood: Another aspect of marriage—the percentage of children born to unmarried women—showed just as great a divergence. Though politicians and media eminences are too frightened to say so, nonmarital births are problematic. On just about any measure of development you can think of, children who are born to unmarried women fare worse than the children of divorce and far worse than children raised in intact families. This unwelcome reality persists even after controlling for the income and education of the parents. In 1960, just 2% of all white births were nonmarital. When we first started recording the education level of mothers in 1970, 6% of births to white women with no more than a high-school education—women, that is, with a Fishtown education—were out of wedlock. By 2008, 44% were nonmarital. Among the college-educated women of Belmont, less than 6% of all births were out of wedlock as of 2008, up from 1% in 1970. http://online.wsj.com/article/SB10001424052970204301404577170733817181646.html

Mr. Murray is the W.H. Brady Scholar at the American Enterprise Institute. His new book, “Coming Apart: The State of White America, 1960–2010″ (Crown Forum) will be published on Jan. 31.

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One Response to The real reasons for income inequality

  1. Stephen.H.
    17 February 2012 at 8:52 pm

    The money-minded see the division in society is about money, social commentators see the division is about different cultures (Murray and his book), the politically-orientated see the division is about politics (“Labour did that”, and “National stands for this”, and so on), but I agree with you, I see society in terms of values. (You’ve highlighted this aspect of Murray’s book) (and you stand for families – (good on you.)

    But there is no doubt about it, Western society is separating into two main classes, the ‘haves’ and the ‘have-nots’, the ‘haves’ being the Ngati powers- authorities-and-wealthy, along with the professional classes, and the ‘have-nots’ being the rest being overtaken by the continual rises in housing, rents, rates, petrol prices, energy charges, taxes and food costs.

    I wish you all, best wishes, in hanging on to middle class, by cutting expenses to the bone, and working for your family and community.

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