By Robert Frank I’ve written before about the myth of sudden
inequality. While income inequality has increased dramatically
over the past 30 years, it’s declined since 2007 and wealth
inequality is actually lower than it was in 1995 – raising
questions about the link between inequality and the current
unemployment rate. A new report puts an even finer point on
changes in inequality. “Basically,” the report finds “income
inequality hasn’t changed in 25 years.” The study, by Ronald M.
Schmidt, of the William E. Simon Graduate School of Business
Administration University of Rochester, challenges the recent
CBO report that found that income inequality expanded
dramatically between 1979 and 2007. That report said the incomes
of the top 1% grew by 275% over the period, while incomes for
most Americans grew by 40% or less. Schmidt’s study said that
most of the CBO’s cited growth in inequality happened between
1979 and 1986. “Most of the increase from 1979 and 2009 had
occurred by 1986,” he writes. Any increases in i