This depressing chart shows that the rich aren’t
just grabbing a bigger slice of the income pie — they’re taking all of it By Christopher Ingraham
Take a look at this chart, from
Bard College economist Pavlina Tcherneva. In an August 2013 paper, she wrote
An examination of average income growth [in the
U.S.] during every postwar expansion (from trough to peak) and its distribution
between the wealthiest 10% and bottom 90% of households reveals that income
growth becomes more inequitably distributed with every subsequent expansion
during the entire postwar period.
In other words, the wealthy are
capturing more and more of the overall income growth during each expansion
period. Notice the sharp drop in the bottom 90 percent's share of growth
starting with the 1982-1990 period — thanks, Reaganomics! Not only that,
but the bottom 90 percent actually saw their real income drop between 2009 and
2012.
This chart doesn't necessarily
tell us anything new — we've known for some time that income inequality
has risen steadily during the postwar period. But this chart is a
novel way of illustrating that fact.
Tcherneva will be presenting
these numbers and others at the 12th Post Keynesian Conference this Saturday, which will be live-streamed.
Christopher Ingraham writes about politics, drug
policy and all things data. He previously worked at the Brookings Institution
and the Pew Research Center.
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