The Great Recession officially ended five years ago, but that's news for millions of Americans: A stunning 95 percent of income growth since the recovery started has gone to the superwealthy. If an average household currently earning $71,000 had enjoyed the same gains as the 1 percent since 2000, it would now make more than $83,000. And the widening income gap is not just about the 1 percent anymore: Take a closer look, and you'll see that it's really a tiny fraction—the 1 percent of the 1 percent—that hoovers up the lion's share of the nation's wealth. With Washington paralyzed on bread-and-butter issues and the midterms ahead, we put together a primer on the state of America's frozen paychecks.
We're still posting a new chart on the current state of income inequality every day over the next week. Yesterday's looked at how top tax rates dropped as top incomes rose.
Today, a closer look at how income inequality splits along racial lines. Whites' average household income is 56 percent larger than that of African Americans and 39 percent larger than that of Hispanics. But the discrepancy is even greater when it comes to wealth: The median white family holds nearly 20 times more assets than he median black family and 74 times more assets than the median Hispanic family.
We're still posting a new chart on the current state of income inequality every day over the next week. Yesterday's looked at how the top 1 percent of Americans have captured half of all income.
Today, let's talk taxes. In the past few years, we've heard a lot about overtaxed "job creators" and freeloading "takers." But consider this: As the income rates for the wealthiest have plunged, their incomes have shot up.
We'll be posting a new chart on the current state of income inequality every day for the next couple of weeks. Our last installment looked at stagnating middle-class incomes.
Today, we look at both sides of the income split and how they've traded places. For the first time in a century, the top 10 percent of Americans control more than half of all income. If this trend persists, predicts economist Thomas Piketty, their share will rise to 60 percent by 2030.