Saez: Income Inequality Up, But Bottom 99% Doing Fairly Well


Good news from Emmanuel Saez:

The latest IRS data show that incomes for the bottom 99 percent of families grew by 3.9 percent over 2014 levels, the best annual growth rate since 1998….

But you knew there had to be a but, right?

….but incomes for those families in the top 1 percent of earners grew even faster, by 7.7 percent, over the same period.

So income inequality continues to increase. Still, over the past two years, the non-super-rich have finally made some gains after seeing their incomes crater during the Great Recession. That’s good news as far as it goes. The remaining question is whether this increase is mostly confined to the top 10-20 percent, or if workers in the bottom half of the income distribution also made gains. The chart below, which shows that hourly earnings of production and nonsupervisory workers have increased about 3.2 percent over the past two years, suggests that the working class has done about as well as the overall bottom 99 percent. The gains of the past two years appear to be fairly widely spread.

FACT:

Mother Jones was founded as a nonprofit in 1976 because we knew corporations and the wealthy wouldn't fund the type of hard-hitting journalism we set out to do.

Today, reader support makes up about two-thirds of our budget, allows us to dig deep on stories that matter, and lets us keep our reporting free for everyone. If you value what you get from Mother Jones, please join us with a tax-deductible donation today so we can keep on doing the type of journalism 2019 demands.

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate