Asenior fellow at the Brookings Institution, Richard Reeves describes in his new book, Dream Hoarders, that while the top 1 percent overwhelmingly receives a disproportionate share of economic gains, the upper middle class is also "hoarding" resources.
Families in the 80th to the 99th percentiles—or those earning at least $112,000—have made out pretty well over the past 35 years. Since 1980, incomes for the top 1 percent skyrocketed, and wages for those in the next 19 percent increased considerably.
Comparably, the bottom 80 percent saw wages stagnate. Reeves details how the wage gains for the top 20 percent translate into access to better schools, better colleges, and, eventually, better jobs with higher wages.
Census data from 2015 demonstrate that just 5 percent of Black households have an annual income of $150,000 or more, compared to 12 percent of White households. In contrast, 22 percent of Black households earn less than $15,000 a year, which is double the 11 percent rate for White households. In terms of income trends, Blacks are the only racial group that actually saw a decline in their real income since 2000.
The 2016 Survey of Consumer Finances indicates that Black households have median wealth of about $17,600 (inclusive of home equity), in contrast to $171,000 in median wealth for White households. And these disparities persist and even worsen factoring in education. Black families where the head of household has a college degree have less wealth than White families where the head of household dropped out of high school.
Families in the 80th to the 99th percentiles—or those earning at least $112,000—have made out pretty well over the past 35 years. Since 1980, incomes for the top 1 percent skyrocketed, and wages for those in the next 19 percent increased considerably.
Comparably, the bottom 80 percent saw wages stagnate. Reeves details how the wage gains for the top 20 percent translate into access to better schools, better colleges, and, eventually, better jobs with higher wages.
Census data from 2015 demonstrate that just 5 percent of Black households have an annual income of $150,000 or more, compared to 12 percent of White households. In contrast, 22 percent of Black households earn less than $15,000 a year, which is double the 11 percent rate for White households. In terms of income trends, Blacks are the only racial group that actually saw a decline in their real income since 2000.
The 2016 Survey of Consumer Finances indicates that Black households have median wealth of about $17,600 (inclusive of home equity), in contrast to $171,000 in median wealth for White households. And these disparities persist and even worsen factoring in education. Black families where the head of household has a college degree have less wealth than White families where the head of household dropped out of high school.
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