Friday, April 25, 2014

The Rich Do Keep Getting Richer...Here's Why

Although there have been complaints of persecution from the 1 percent by the 99 percent, those victimized by such wealth/income equality may have a good reason.  According to the 'Economic Policy Institute, its a gap that has been growing for quite some time...
"A key point in Thomas Piketty’s new bookCapital in the Twenty-First Century is that strong forces in the economy could, if unchecked, lead to an ever greater concentration of wealth and the incomes that flow from wealth. The fact that income from wealth (capital gains, interest, dividends and so on) goes disproportionately to those with the highest incomes means that rising income from wealth leads to greater income inequality. One reflection of this process in the United States is that the share of income from wealth going to the top 1 percent has greatly increased in the last few decades, rising from 33.5 percent of all income from wealth in 1979 to 54 percent in 2010."
"The figure below shows the share of income derived from owning wealth in the U.S. economy between 1979 and 2010, using data from the Congressional Budget Office (CBO). It adds up rents, dividends, interest payments, capital gains, and business income and calculates what share of this income derived from owning wealth—often short-handed as “capital income”—is claimed by the top 1 percent of households, the bottom 90 percent of households, and the 9 percent of households in between these groups (households between the 91st and 99th percentiles)."

What's quite clear is that unless something is done, those of us at the bottom will never catch up!

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