U.S. Income Inequality Isn't Soaring, It's Falling

Google "income inequality" and you will find almost 9 million references. Every day seems to bring new reports on the magnitude or the growth of U.S. income inequality. These reports often include claims that middle-class incomes have been stagnant for two or more decades, implying a link between the two.
Is income inequality a major problem? And have middle-class incomes been stagnant for decades? The data indicate the answer to both questions is no.