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Quotation of the Day…

… is from page 148 of Thomas Sowell’s 2008 volume Economic Facts and Fallacies:

A hasty leap from statistical categories to economic realities underlies many fallacies about income and wealth.  When more than two-thirds of the economic resources available to people in the bottom 20 percent of income earners get left out of income statistics because they are transfers in cash or in kind from government, that is a serious discrepancy between statistics and reality.  Similarly when three-quarters of the economic resources available to the elderly do not get counted in statistics on earnings.  Nor are these random discrepancies.  Almost invariably, such widely publicized statistics overstate poverty and understate standards of living.