The Left loves to rail against economic inequality as a sign of how supposedly unjust capitalism is, and there needs to be some sort of socialism infused in it. Unfortunately for them, data shows that wealth inequality is actually quite low compared to previous centuries.
Here is the chart that proves this:
A clear pattern emerges from the chart: as technology and society advanced, inequality declined dramatically among the United States and other Western countries.
The Left has long held the belief that capitalism benefits the rich at the expense of the poor. If that were true, then wealth inequality would have spiked over time. But instead the opposite was true. Why?
As The Daily Wire has explained, the statistics show that free trade, globalization and capitalism as a whole have resulted in a serious decline in poverty worldwide, improved access to various goods and services, and a drop in child mortality rates. Back in April, Ben Shapiro compiled scores of statistics showing that in the United States, life expectancy and living standards have skyrocketed, and income mobility has increased.
In other words, the free market provided those in lower economic brackets with the opportunity to improve their living circumstances, therefore causing wealth inequality to plummet since 1740.
The problem with most inequality statistics is that they only focus on groups rather than individuals and fail to take into account a myriad of other variables: (H/T: Townhall)
Dr. [Thomas] Sowell writes that the fallacy of wealth and income inequalities is that they study inequalities between groups rather than individuals. When Dr. Sowell presented the data that studied changes in an individual’s wealth and income over a period of time, it showed that the people inhabiting each income bracket are constantly changing, with those who are poor becoming rich and vice versa. Dr. Sowell also points out that the inequality statistics also don’t take into account transfer programs (food stamps, Medicaid, etc.), and when they are taken into account it shows that there really isn’t as much inequality as those on the left (like my former professor) say there is.
Chapter 7, which focuses on wealth inequality between countries, is a particularly interesting chapter since it shows the variables that aren’t taken into account when global wealth inequality statistics are presented. The left would have you believe that it’s due to Western imperialism and exploitation of Third World countries, but Dr. Sowell provides research showing that, in fact, countries touched by Western influence performed better economically than those who rejected it (and a subsequent economic collapse followed). The variables that cause a country to be Third World status include geography, culture, and law and order.
That's why it's better to have a chart that compares inequality over a wide swath of years to get an idea of how much better off people are today.
It's important to beat the Left at their own game. If they are concerned about wealth inequality, then it's easy to turn the tables on them and point out that it's thanks to liberty and the free market that inequality has sunk over the past couple of centuries. It's their policies that are antithetical to free enterprise and will therefore result in wealth inequality worsening.