Charles Blow’s article in the New York Times presents some tough facts for readers.  It argues that while income inequality has grown, Americans don’t seem to notice or care.  If we don’t acknowledge the problem and do something about it, we are heading toward our doom.  Fortunately, Mr. Blow is wrong.  We are not facing some eminent doom because of income inequality.  Mr. Blow just seems upset that most Americans are not as angry as he is.

Mr. Blow believes society is divided between the “haves and the “have nots.”  He also believes almost all of us are in the have not category, while a tiny group of haves live in luxury.  This situation, he argues, is jeopardizing our recovery and could lead to our doom.  Until something is done about income inequality, we are in serious trouble. We are close to an imaginary “tipping point” where something bad will happen.

But facts are stubborn things.

Income inequality has very little to do with economic collapse, political unrest, or any other kind of doom. The most common measure of income inequality is the gini coefficient index - a complicated formula that measures distribution of income among households and boils it down to a single number.  The higher the gini index, the more unequal the households.  Europe has among the lowest gini indexes yet sits on the edge of financial disaster and a second recession.  Brazil, among the most unequal countries on Earth, did not endure any recession in 2008 or 2009.

Every country that has experienced political turmoil or revolution in the past few years has a lower gini index than the United States (Greece, Egypt, Tunisia, Pakistan, etc.).  On the other side, several countries with high gini indexes are relatively stable and growing.

No need to sound the alarm.  However you choose to measure inequality, it has no correlation with economic disaster.  America isn’t facing doom because of a complicated economic statistic being too high.

Income inequality statistics are also misleading.  As economist Thomas Sowell points out, “income statistics are classic examples of numbers that can be arranged differently to suggest, not merely different, but totally opposite conclusions.”  Dividing individuals into income groups is only a snapshot of what they’re earning in that year.  As has been pointed out, Americans are constantly moving among the different categories.  These income earning categories are just that, categories not people.

Mr. Blow’s article is really about how one judges success.  We are in denial of our true stature.  His evidence of denial is a Gallup poll where people were asked if they think of America as being divided between “haves” and “have nots.”  A majority (58 percent) said they do not think of America that way.  Among those that do, 58 percent consider themselves one of the haves.  Mr. Blow believes this is evidence that Americans either don’t know there is such inequality or don’t think it’s a problem.

As far as the denial claim, he is wrong.  Only 10 percent of respondents rate the economy as excellent or good.  Only 31 percent believe the economy is getting better.  The RCP average puts the percentage of Americans believing we are on the wrong track at 71 percent.  Americans are not denying an economic problem exists.  It is also safe to assume Americans are aware there is income inequality.  It is more likely Americans merely don’t like the oversimplified have/have not cliché.

The Gallup poll suggests Americans don’t think money is everything.  Among those that see society divided, 52 percent of the unemployed consider themselves haves.  About 49 percent of those with a high school education or less also consider themselves haves.  Astonishingly, over a third of those below or near poverty consider themselves haves.  If Americans believed money is all that matters, you would expect these groups to overwhelmingly consider themselves the have nots.

How is this possible?  What does it mean to be a have or a have not?  Is a have not someone who makes less than $150,000 a year?  Is it someone who isn’t in the top 10 percent of income earners?  Is it someone who hasn’t seen their income rise in the past ten years?

If you have to be rich to be a “have,” then really the question is asking if you want more money.  Secondly, unless we reject basic math, ninety percent of people will always be outside the top ten percent of income earners.  Most Americans don’t equate success or social status (being a have) with income.  Instead of calling them delusional, Mr. Blow could learn something from them.

There is a significant problem with looking at society as divided between haves and have nots.  It implies that success and happiness in life are relative to the achievements of others.  While your own situation may be comfortable, a wildly wealthy neighbor may make you feel like a have not.  Such things only matter to those obsessed with status and reputation.

This sentiment isn’t about equality, it is about jealously.  As the Gallup poll suggests, Americans generally aren’t a jealous people.  Most Americans don’t define themselves based on how much stuff other people have.  According to Gallup, 48 percent are in a “happy” mood while only 11 percent are stressed.  Where would those numbers be if we all thought like Mr. Blow?