Income Gap Between Rich and Poor is Largest in Hundred Years
The income gap in the U.S. is as wide as it has been in almost 100 years, according to a new study by UC Berkeley, the Paris School of Economics, and Oxford University. The study, based on Internal Revenue Service statistics, reports that although the Great Recession hit the top 1 percent hard, the wealthy recovered more quickly than other income groups. The L.A. Times reports:
The 1929 stock market crash that preceded the Great Depression, followed by World War II, reduced an earlier national income gap for decades. But it began to grow again in the 1970s, and has widened since.
Saez attributes the trend not just to technology and job outsourcing, but to the reduced power of progressive tax policies and unions, along with "changing social norms regarding pay inequality."
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