Krugman vs. Cavuto: inequality

Cavuto thinks that Krugman is lying about inequality. He claims that income inequality isn’t
dramatically worse now than 10 years ago, 20 years ago.

Cavuto to Krugman: ‘You Are Lying To People’, ThinkProgress:
Princeton economist and New York Times columnist Paul
Krugman went on Fox News this afternoon to talk about his new article in Rolling
Stone Magazine, “How the Super-Rich Are Screwing America.”

From ThinkProgress, Krugman versus Cavuto on Fox News:

Krugman’s article is about how income inequality is getting worse and, as a
result, even though some aggregate economic indicators are positive, most people
aren’t benefiting. Cavuto told Krugman, “Here’s what I’m saying that you’re
doing: You are lying to people.” Cavuto claims that income inequality isn’t
“dramatically worse now than 10 years ago, 20 years ago.”
Watch it…

Actually, Krugman is completely right: things are dramatically worse now than
10 or 20 years ago. Here’s a chart from the Economic Policy Institute that
tracks the ratio of the wealthiest 1 percent of Americans to median income in
the United States,

a standard measure of income inequality …

Full transcript:

CAVUTO: Here’s what I’m saying that you’re doing: You are lying to people.
That’s what I think that you’re doing.

KRUGMAN: I haven’t heard a lie yet. But, look, if that’s the way you want to
do it, I mean, fair and balanced, go all the way. Look, c’mon, the fact of the
matter is–

CAVUTO: No, no, you don’t have to be snide. You have to be factual.

KRUGMAN: You’re being snide.

CAVUTO: No, no, you’re mentioning good data. You’re saying there’s a growing
divide between the haves and have nots. Others have argued that very effectively
and very eloquently, just like you. All I’m saying is that the math that applied
now, can’t you apply it in other periods, when there have been Democratic
presidents who’ve had the same dislocations? You’re saying that it’s somehow
dramatically worse now than it was 10 years ago, 20 years ago?