The Bureau of Labor Statistics released data this morning that points to
slower wage growth in the U.S., which coupled with higher prices due to inflation means sinking real earnings for most American workers. This continues the trend of increasing income inequality in the U.S.
Economic Policy Institute has analyzed the relative change in incomes for different income groups from 1979 to 2005. During this period, after-tax income grew by 6.3 percent for the poorest households, 21 percent for middle income households, and 80 percent for the top. The very top, or highest 1 percent of earners in the U.S., saw their income grow by 228 percent during this period.
In "
American Inequality and Its Consequences," Gary Burtless of The Brookings Institution and Christopher Jencks of Harvard University report:
We worry most about the possibility that changes in the distribution of income have led to changes in the distribution of political power both because such a change undermines the legitimacy of the political system and because it can make the increase in economic inequality irreversible.
According to the
American Political Science Association’s Task Force on Inequality and Democracy:
Between the mid-1960s and the mid-1990s the proportion of Americans who felt that “the government is run by a few big interests looking out only for themselves” more than doubled to reach 76 percent, while the number who believed that “public officials don’t care about what people think” grew from 36 percent to 66 percent. More than six in 10 respondents to a 1995 survey cited too much influence by special interests as a reason for not trusting government.
Coincidence?
You are not logged in.
In order to post a comment, you must be logged in. If you have a member account, please log in to comment.
If not, you can make an account just by filling out the form below. It's quick and free.
