The Gini index demonstrates Saez-Piketty trends. These two very different markers show that inequality is increasing.
The trend line for the Gini index (Gini) is well correlated with the trend line from Saez-Piketty Inequality (SPI) studies, although these two ways to estimating inequality are unrelated – different techniques employed by different economists using different resource bases.
We present this result as a graph through time, discuss what Gini and SPI indicators mean, and examine why the Gini marker, part of the standard U.S. Census Bureau (USCB) report, is intrinsically hard to use. Click any image for full resolution.
Gini Index of Inequality
The Gini index is a value devised by the Italian Corrado Gini and meant to indicate the “level” of a country’s inequality. Gini uses data about a country’s economy to calculate a single value G that ranges from 0 to 1. The bigger the G number, the more unequal the society. Continue reading