Welcome To The 1% Recovery
(Information Clearinghouse) -- by Mike Konczal --
As the 1% reap 93 percent of the income gains from the recovery, we’re rapidly returning to pre-New Deal levels of inequality.
--- There was a brief debate focused on the following question: would the gains of the economy continue to accrue to the top 1% once the recovery started, or would they have a weak post-recession showing in terms of raw income growth as well as income share of the economy? The top 1% had a rough Great Recession. They absorbed 50 percent of the income losses, and their share of income dropped from 23.5 percent to 18.1 percent. Was this a new state of affairs, or would the 1% bounce back in 2010?
We finally have the estimated data for 2010 by income percentile, and it turns out that the top 1% had a fantastic year. The data is in the World Top Income Database, as well as Emmanuel Saez’s updated “Striking it Richer: The Evolution of Top Incomes in the United States” (as well as the excel spreadsheet on his webpage). Timothy Noah has a first set of responses here. The takeaway quote from Saez is, “the top 1% captured 93% of the income gains in the first year of recovery.”
First off, let’s get some absolute numbers here. Here is income by important percentiles, as well as the change from 2009-2010. I include the change with and without capital gains to make it clear that this is a phenomenon both in and independent of a strong stock market (click through for larger image):
The bottom 90 percent of Americans lost $127, the bottom 99 percent of Americans gained $80, and the top 1% gained $105,637. The bottom 99 percent is net positive for the year due to around $125 in average capital gains. They can take comfort in efforts by the right to set the capital gains tax to 0 percent, which would have netted them an additional couple dozen bucks...MORE...LINK
How Jews used their cohesive ethnic network to infiltrate liberal, egalitarian and greedy elements of WASP America, and put them to use for the inhuman Marxist-Zionist agenda - How Jews used their cohesive ethnic network to infiltrate liberal and money-worshiping elements of WASP America, and put them to use for the inhuman Marxis...
2 days ago