Tag: need for social reform

Income inequity – All time high!

From Huffpost: ” 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.”  (Emphasis mine)

READ the entire paper:

http://elsa.berkeley.edu/~saez/saez-UStopincomes-2006prel.pdf

See: http://mail.google.com/mail/#inbox/1231c42e662ce2b1

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