Twisted Titan
4th October 2010, 11:21 AM
"Great Recession" Pushes Gap Between Rich and Poor to Record Levels
http://finance.yahoo.com/tech-ticker/article/535469/%22Great-Recession%22-Pushes-Gap-Between-Rich-and-Poor-to-Record-Levels
With Congress dithering over what to do about Bush-era tax cuts set to expire on Dec. 31, there's a heated debate in America about what it means to be "wealthy" in America. Meanwhile, the gap between rich and poor is wider than ever:
In 2009, the top 20% of American earners -- those making more than $100,000 annually - received 50.3% of all income generated in the country, compared with 12% for the bottom 40% and 3.4% for those below the poverty line, according to the Census Bureau. In 1999, the top 20% claimed 49.4% of the income and the bottom 40% got 12.5% of the income.
Last year 43.6 million Americans, or 14.3% of the population, were living below the poverty rate, the highest level since 1994. A record 6.3% of Americans were making less than 50% of poverty-level income, defined as income of $21,954 for a family of four. (Those poverty figures exclude government programs such as Food Stamps.)
The percent of income garnered by the wealthiest 10% of U.S. households hit 48.2% in 2008, up from 34.6% in 1980, according to a recent report on income equality by the Congressional Joint Economic Committee. "Much of the spike was driven by the share of total income accrued by the richest 1% of households. Between 1980 and 2008, their share rose from 10% to 21%, making the United States as one of the most unequal countries in the world."
Perhaps most important is what's happening in the middle. The inflation-adjusted income of the median U.S. household fell 4.8% between 2000 and 2009, The WSJ reports, citing Census Bureau data. Between 2007 and 2009, median incomes fell 4.2%.
In the accompanying video, Dan and I discuss these trends and some of the reasons why the "Great Recession" has been particularly hard on those at the bottom.
The real questions are what, if anything, can be done to reverse this trend of the rich getting richer and the poor getting poorer? And what happens to America if we don't?
http://finance.yahoo.com/tech-ticker/article/535469/%22Great-Recession%22-Pushes-Gap-Between-Rich-and-Poor-to-Record-Levels
With Congress dithering over what to do about Bush-era tax cuts set to expire on Dec. 31, there's a heated debate in America about what it means to be "wealthy" in America. Meanwhile, the gap between rich and poor is wider than ever:
In 2009, the top 20% of American earners -- those making more than $100,000 annually - received 50.3% of all income generated in the country, compared with 12% for the bottom 40% and 3.4% for those below the poverty line, according to the Census Bureau. In 1999, the top 20% claimed 49.4% of the income and the bottom 40% got 12.5% of the income.
Last year 43.6 million Americans, or 14.3% of the population, were living below the poverty rate, the highest level since 1994. A record 6.3% of Americans were making less than 50% of poverty-level income, defined as income of $21,954 for a family of four. (Those poverty figures exclude government programs such as Food Stamps.)
The percent of income garnered by the wealthiest 10% of U.S. households hit 48.2% in 2008, up from 34.6% in 1980, according to a recent report on income equality by the Congressional Joint Economic Committee. "Much of the spike was driven by the share of total income accrued by the richest 1% of households. Between 1980 and 2008, their share rose from 10% to 21%, making the United States as one of the most unequal countries in the world."
Perhaps most important is what's happening in the middle. The inflation-adjusted income of the median U.S. household fell 4.8% between 2000 and 2009, The WSJ reports, citing Census Bureau data. Between 2007 and 2009, median incomes fell 4.2%.
In the accompanying video, Dan and I discuss these trends and some of the reasons why the "Great Recession" has been particularly hard on those at the bottom.
The real questions are what, if anything, can be done to reverse this trend of the rich getting richer and the poor getting poorer? And what happens to America if we don't?