The Cato Institute’s Will Wilkinson has a fabulous new paper out on the subject of economic inequality. In addition to covering (more than ably) some familiar ground, such as why measurements of annual consumption are better than annual income to evaluate claims of inequality, Wilkinson makes a broader point that surveys of personal happiness and satisfaction ought to be given at least as much attention in the discussion, as they are more likely to capture real rather than nominal consumption inequality:

The weight of evidence supports the idea that there has been no increase in real consumption inequality. Further, the possibility that standards of living have actually become more equal is supported by several strands of evidence, including the decline of inequality in life satisfaction since the 1970s. Fixating on income inequality may have caused us to miss one of the biggest stories of modern times: America may have become materially more equal. And no one noticed.

Well, almost no one. A characteristically thoughtful exploration of a complex issue by Wilkinson, and well worth your time.