Income inequality in the United States is at an all-time high, surpassing even
levels seen during the Great Depression, according to a recently updated paper
by University of California, Berkeley Professor Emmanuel Saez. The paper, which
covers data through 2007, points to a staggering, unprecedented disparity in
American incomes. On his blog, Nobel prize-winning economist and New York Times
columnist Paul Krugman called the numbers "truly amazing."
Though income inequality has been growing for some time, the paper paints a
stark, disturbing portrait of wealth distribution in America. Saez calculates
that in 2007 the top .01 percent of American earners took home 6 percent of
total U.S. wages, a figure that has nearly doubled since 2000.
As of 2007, the top decile of American earners, Saez writes, pulled in 49.7
percent of total wages, a level that's "higher than any other year since 1917
and even surpasses 1928, the peak of stock market bubble in the 'roaring"
1920s.'"
Beginning in the economic expansion of the early 1990s, Saez argues, the
economy began to favor the top tiers American earners, but much of the country
missed was left behind. "The top 1 percent incomes captured half of the overall
economic growth over the period 1993-2007," Saes writes.
Despite a rising stock market, largely growing employment and a historic
housing boom things were not nearly so rosy for the rest of U.S. workers. This
trend, according to Saez, only accelerated during the George W. Bush's tenure
as President:
"...while the bottom 99 percent of incomes grew at a solid pace of 2.7
percent per year from 1993-2000, these incomes grew only 1.3 percent per year
from 2002-2007. As a result, in the economic expansion of 2002-2007, the top 1
percent captured two thirds of income growth."
READ the entire paper:
http://www.huffingtonpost.com/2009/08/14/income-inequality-is-at-a_n_259516.html
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