Fox News downplayed the gravity of income inequality -- proven insurmountable for a majority of the poorest Americans and detrimental to economic growth -- in order to tout a report which found that 20 percent of adults in the U.S. will be among the top 2 percent of earners at some point in their lives.
On December 9, NBC News published an Associated Press report which found that 20 percent of U.S. adults enter the wealthiest 2 percent of earners at some point in their lifetimes [emphasis added]:
Fully 20 percent of U.S. adults become rich for parts of their lives, wielding outsize influence on America's economy and politics. This little-known group may pose the biggest barrier to reducing the nation's income inequality.
Made up largely of older professionals, working married couples and more educated singles, the new rich are those with household income of $250,000 or more at some point during their working lives. That puts them, if sometimes temporarily, in the top 2 percent of earners.
On the December 9 edition of Your World, host Neil Cavuto touted the AP study as "good news" and ignored its negative implications, such as the finding that those in the top 2 percent are "less likely to support public programs, such as food stamps or early public education, to help the disadvantaged":
CAVUTO: You ever want to be in the top 2 percent? Well, you've got a 1 in 5 chance of making it -- it's true, 21 percent of Americans have been there, making the 250,000 bucks or so it takes to be among those rarefied few. That's good news, right? Well, not if you're the mainstream media. It's seen as a problem, not a triumph. To quote the Associated Press, this little-known group may pose the biggest barrier to reducing the nation's income inequality. Biggest barrier, so now, this is a problem?
Fox News contributor Charles Payne dismissed the importance of closing the income gap, saying, "People make it all the time in this country." But findings from a recent Pew report refute Payne's claim, particularly where Americans at bottom of the income ladder are concerned. According to the report, "43 percent of Americans raised at the bottom of the income ladder remain stuck there as adults, and 70 percent never even make it to the middle."
Fox News contributor Monica Crowley later described the administration's efforts to reduce income inequality as "a war on wealth" and "a war on success." However, many economists agree that policies aimed at reducing inequality also spur economic growth. Economist Robert Reich has argued for decades that economic inequality "is bad for everyone," including the very wealthy, because it hinders economic growth. Nobel Prize-winning economist Joseph Stiglitz has also contended that income inequality leads to "less growth and less efficiency."
During their discussion, Cavuto and his guests ignored the harsh realities faced by Americans excluded from the top income bracket. According to another AP report, "4 in 5 American adults struggle with joblessness, near poverty or reliance on welfare for at least part of their lives." And contrary to Cavuto's optimistic outlook, the U.S. Census Bureau found that the poverty rate increased by 2.7 percent from 2007 to 2012.