The income gap between the 1% and the rest of us hasn’t been this wide since 1927 according a new study from the University of California, Berkeley, Striking it Richer: The Evolution of Top Incomes in the United States.
The incomes of the ONE PERCENTERS grew by 31% after the Crash of 2008-2010 while the incomes of the rest of us grew by an anemic 0.4% not even adequate to make up for what we lost in the Crash.
The Study reports:
The labor market has been creating much more inequality over the last thirty years, with the very top earners capturing a large fraction of macroeconomic productivity gains. A number of factors may help explain this increase in inequality, not only underlying technological changes but also the retreat of institutions developed during the New Deal and World War II – such as progressive tax policies, powerful unions, corporate provision of health and retirement benefits, and changing social norms regarding pay inequality. We need to decide as a society whether this increase in income inequality is efficient and acceptable and, if not, what mix of institutional and tax reforms should be developed to counter it.