I have talked about the shaky statistics that make up the income gap and median income.   I just ran across an interview with Thomas Sowell regarding his new book; Intellectuals and Society; that ads even more clarity to the point (in part 2).

Part 1 | Part 2 | part 3 | part 4 | part 5

His point is that following the pattern of the group gives a false impression of the movement of individuals.   If median income goes down the goal is to convince you that people are losing money.  But in point of fact, if you follow a single individual you will find that they have moved up into higher brackets.   It is statistically more likely for someone in the top 5% to drop down then it is for someone to move up.   Income of that level simply cannot be maintained consistently.

This generally supports my argument that newer and less skilled workers are entering the work force and bring down the averages.  The supporting facts the single individuals move up the brackets (until the top) only ads additional strength.

I believe that Glenn Beck hits on this point in his new book Arguing with Idiots, as well.

Note:  Part 3 is great as well and hits on one of my favorite points.   The intellectual superiority complex.