September 13, 2013

U.S. Income Inequality Reaches Highest Level Since 1928

From the Alliance for Retired Americans:

A new economic study reveals income inequality between the wealthiest Americans and the rest of the population continues to increase.

According to an analysis of IRS figures dating to 1913 by economists at the University of California, Berkeley, the Paris School of Economics and Oxford University, the richest 1% earned 19.3% of all household income in 2012 and the richest 10% earned 48.2%. The incomes of the richest 1% also rose by 20 percent last year, while the remaining 99% experienced only a 1% increase.

Since the economic recovery began in 2009, over 95% of all income gains have gone to the top 1%, while ordinary Americans have seen their incomes stagnate. For more, see a CBS article and the study

“With so much of the country’s wealth concentrated in the hands of a small number of wealthy individuals, it is harder than ever for ordinary Americans to save for retirement,” said Edward F. Coyle, Executive Director of the Alliance.   “Yet House Budget Committee Chairman Paul Ryan and his allies continue to insist that we need to further cut taxes for the rich, while slashing Social Security, Medicare, and Medicaid benefits. They are flat-out wrong; it is time for the wealthiest Americans to contribute their fair share to ensure a secure retirement for all.”

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