A Look At Income Equality Since 1980
Kevin Drum shares this sobering chart, which shows the share of total earnings that go to each income bracket. It pretty clearly demonstrates how supply side economic policies have benefitted the rich and the super rich. Meanwhile, everybody else is left holding the bag.
Where’d he get the data? The CBO.
If you look at the raw CBO figures, they show that a full tenth of the national income has shifted since 1979 to the top 1% of the country. The bottom quintiles have each given up a bit more than two percentage points each, and that adds up to 10% of all earnings. That 10% has flowed almost entirely to the very tippy top of the income ladder.
Is the middle class worse off because of this? Of course they are. Income matters even if plasma TVs are cheaper than they used to be or if CPI mismeasures middle class consumption or if average households now contain 2.6 members instead of 2.7. If this massive income shift hadn’t happened, middle class earnings would be higher, they’d be able to buy more stuff, and they probably wouldn’t be in debt as much. And the top 1% wouldn’t have quite so much idle cash lying around to do stupid things with.