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Us Income Gap Soars To Widest Since "roaring 20S"

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http://www.zerohedge.com/news/2013-09-11/us-income-gap-soars-widest-roaring-20s

The last time the top 10% of the US income distribution had such a large proportion of the entire nation's income was the 1920s - a period that culminated in the Great Depression and a collapse in that exuberance. As AP reports, the very wealthiest Americans earned more than 19% of the country's household income last year — their biggest share since 1928, the year before the stock market crash. And the top 10% captured a record 48.2% of total earnings last year. Analysis by Emanuael Saez shows that, based on IRS data, in 2012, the incomes of the top 1% rose nearly 20% compared with a 1% increase for the remaining 99%. Economists point to several reasons for widening income inequality including globalization and technology. However, as John Taylor explains in his recent WSJ Op-Ed, using this as a lever for Obama's "middle-out" policies - higher tax rates, more intrusive regulations, more targeted fiscal policies - will not revive the economy. More likely they will perpetuate the weak economy we have and cause real incomes—including for those in the middle—to continue to stagnate.

20130911_inequal1.jpg

http://www.scribd.com/doc/167308101/Saez-UStopincomes-2012

The paper.

And at the end of the 20's I wonder what happened..... Still I'm sure history won't rhyme. :ph34r:

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Looks like their share only fell due to the war effort - i.e. not due to the Depression.

Well the differential began to fall in after 2007-2010 also...more because top end wages fell and bottom end stayed the same...but prices fell...what do you care if your salary stays the same but prices fall. The trouble for politicians is that short term unemployment rises as the economy rebalances, and in todays soundbite media world this necessary evil is considered unacceptable.

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