An economic recovery – but only for the top 1%

April 3, 2012 | Alex Stone

Can we really say the U.S. economy is recovering when 93% of all income gains in 2010 went to the top 1%?

In 2010, average U.S. unemployment reached its peak of 9.6%; home values continued to crater; and more Washington families needed food assistance then ever before. That same year, the wealthiest 1% hoarded 93 cents of every dollar created – leaving just 7 cents for everyone else.

This development is actually part of a decades-long trend of regular income increases for those earning 6 figures or better, while the “bottom 90%” (read: middle income and low-income) watch their incomes decline – despite huge increases in economic productivity.

For reference, here are average incomes by group in 2010 dollars:

  • Top 0.01%: $16,267,243
  • Top 0.1%: $3,693,117
  • Top 1%: $857,477
  • Top 10%: $227,761
  • Bottom 90%: $29,399

All data from The World’s Top Income Database by Facundo Alvaredo, Tony Atkinson, Thomas Piketty and Emmanuel Saez

Tagged with: , ,
Posted in Tax and Budget

Comments

Leave a Reply

Search the blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Like what you’re reading?
Reader support helps preserve our independent voice for the middle class - please chip in to help out!