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To: r-q-tek86

RE: Saez is a lier. Anything with his name on it is pure bs

Can you elaborate as to why he cannot be trusted?


7 posted on 03/29/2013 6:05:28 AM PDT by SeekAndFind
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To: SeekAndFind
Can you elaborate as to why he cannot be trusted?

Dr. Sowell's book Economic Facts and Fallacies and the book he heavily references, Alan Reynolds Income and Wealth do a better job that my feeble attempt, but the short answer is that Saez (and Piketty and Wolfe) take income numbers for various groups and ADD as much as they can to the upper income and SUBTRACT as much as they can from the lower earners to build a false impression. Further, they ignore changes in the type of income reporting - such as the S-Corp laws that changes the way income for corporations was reported in the '80s - They ignore the threshold fallacy, they mix the definition of mean average and median average when it supports their deception, they use various inflation adjustment formulas to paint the picture they want, and on and on.

The Sowell book does a great job of unmasking these false studies, but I wanted to check sources so I looked at the Reynolds book (and the direct sources he cites). The Reynolds book is much, much drier than Sowell, but it really decimates Saez.

Since reading these books, I am amazed at how often Piketty, Saez and Wolfe show up as source material for the latest "income inequality" crusade that comes from the left. Why we don't call these guys out is beyond me.

19 posted on 03/29/2013 7:08:56 AM PDT by r-q-tek86 ("It doesn't matter how smart you are if you don't stop and think" - Dr. Sowell)
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