Economic View: Time to Slay the Inequality Myth? Not So Fast:
"In recent weeks, a new book has challenged this conventional wisdom, calling it a statistical mirage, and its striking claim has begun to receive national attention. Among native-born Americans, lower- and middle-income families have actually received proportionately bigger raises than the wealthy, according to 'The Progress Paradox' (Random House), written by Gregg Easterbrook, a Washington journalist. Only a great influx of immigrants - many of them poor, but richer than they were in their home countries - has made inequality appear to widen in the statistics, Mr. Easterbrook says. "

"Factor out immigration," he writes, "and the rise in American inequality disappears."

The idea has echoed from the book into the pages of The Washington Post, The Chicago Sun-Times, The San Diego Union-Tribune, The Times of London and BusinessWeek magazine, among other publications. It seems like one of those facts that could rewrite conventional wisdom about the American economy.

It happens, however, not to be true.…

http://www.nytimes.com/2004/01/25/business/yourmoney/25view.html