richest 1% Archives

Former US Treasury Secretary Larry Summers

Former Secretary of the Treasury and gifted face-maker Larry Summers has calculated how much more middle-class households would make if the United States enjoyed the same income distribution it had in 1979, and the results are startling. According to his calculations, households in the bottom 80% of incomes would be making another $11,000 a year, on average, if we had experienced the same economy of the last 35 years without the growth in inequality. Households in the top 1%, on the other hand, would get $750,000 less. If you’re having a hard time wrapping your head around those two numbers, NPR’s Planet Money podcast has produced a helpful graph. Scroll down to see the whole thing—like six screens down.

Slate is midway through what is threatened to be a two-week series on income inequality in America, just in time for the controversial announcement that the President will not try to solve the economy by giving more money to rich people. Timothy Noah looks at several putative dangers to America’s middle class, including immigration, racism/sexism, and computers, none of which accounts for the growing gap between rich and poor in the United States. That gap is enormous. Currently, the wealthiest 1% of Americans take home 24% of the national income. Between 1980 and 2005, more than 80% of the nation’s considerable increase in earnings went to that 1%. To put that in perspective, back in 1915—the era of the Carnegies, Vanderbilts and Rockefellers, as well as a generation of non name-brand robber barons—the top 1% only got 18%. Economically, ours is a less equal America than that of our great grandparents.

Dan Brooks writes essays, fiction, and commentary from Montana and abroad.

Tag Archives: richest 1%

Summers says inequality costs average household $11,000 a year

Slate’s Timothy Noah on income inequality