Thursday 24 February 2011

The great reversal

The State of Working America, an ongoing analysis published since 1988 by the Economic Policy Institute, includes a wide variety of data on family incomes, wages, jobs, unemployment, wealth, and poverty that allow for a clear, unbiased understanding of the economy’s effect on the living standards of working Americans.

On the Economic Policy Institute's web site, The State of Working America

The site has an interactive income graph, which currently goes from 1917 up to 2008. Some of the comparisons are interesting:

In the decade1968-1978, average US incomes went up by $756.* The incomes of the richest 10% declined. All the growth went to the bottom 90% of earners.

In the decade 1978-1988, average incomes went up by $4,033. All growth went to the richest 10%. Incomes for the bottom 90% declined

In the 20 years from 1988 to 2008, average incomes went up by $6,853. All growth went to the top 10%. Incomes for the bottom 90% declined.

See for yourself, with many more examples and graphics, here. I wonder how the figures for the UK compare? I don't yet know, but I'd guess that some time around the start of the eighties marked a decisive swing towards increasing income inequality over here, too.

*all figures are in 2008 dollars.

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