Bloomberg: Top 1% Got 93% of Income Growth as Gap Between Rich and Poor Widens

Economists are right when they say the U.S. economy has been growing, it’s just that regular workers haven’t been getting much of that growth. The reason many ordinary people don’t feel like the recession is ending is because their wages are declining, while the top 1% have seen dramatic increases in their income.

Bloomberg reports:

…the U.S. has gone through two recoveries. The 1.2 million households whose incomes put them in the top 1 percent of the U.S. saw their earnings increase 5.5 percent last year, according to estimates released last month by the U.S. Census Bureau. Earnings fell 1.7 percent for the 96 million households in the bottom 80 percent — those that made less than $101,583.

So the super rich have seen their income increase, while the vast majority of Americans have seen their income decline. There is an economic recovery, but those at the top are hoarding the spoils from that recovery for themselves and their families. They’re not allowing their good fortune to “trickle down” to ordinary workers.

In addition, the Census also reports that the earnings gap between the rich and poor in America is the widest in more than four decades, greater than income inequality in both Uganda and Kazakhstan.

For people who own stocks, the recession is over, as stocks have long since rebounded, but people who owned homes are still reeling from the aftermath of the subprime mess.

Republicans charge that Democrats are dividing America whenever Democrats call on the rich to pay their fair share, but truth be told, America is already divided, at least along the lines of income. The rich are walking away with the lion’s share of income and the poor and middle class are getting the scraps. It seems that the class warfare has already been waged. Now it’s only a matter of who will win and who will lose.

 

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