Thursday, January 11, 2018

Income Inequality American style

Since 1973, the income share of the bottom 90 percent has declined from 47 percent to 32 percent. Obviously this means that the income share of the top 10 percent has increased from 53 percent to 68 percent. This is pretty consistent with an even bigger increase for the top 1 percent.

 Basically, the income share of the non-rich is easier to measure since it’s mostly wage income and isn’t affected by tax law changes or capital gains measurements. Whatever’s left must be the income of the rich, one way or another. If you do this, the 90-10 measure of income inequality has increased from 113 percent to 213 percent since 1973. That’s a lot.

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