Increasing Income Inequality

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We often hear about income inequality, the demise of the middle class, and other flippant commentary about the changing dynamics in US earnings, but rarely do you see it so well encapsulated as in this chart from the Wall Street Journal. Beyond the now common 99% arguments, this chart splits hairs further to show the incredible slope of the line from the bottom to the top of the income ladder. Plus it gives you the most recent 10-year window into inflation adjusted growth rates. In other words, it really is happening, dramatically so, and you should note that this chart does not even reflect capital gains. Those, of course, are very likely similarly skewed to the top end, if not more so, and would make this an even more compelling story.

I offer no social commentary here, just presenting data for your own consideration. Is this something that should concern you? Is it something the Government should be considering? Should the Government be acting on this data? I certainly have my own opinions, but would love for you to share your reaction. If you are not inclined to share, make it a topic for conversation.MI-BZ607_UNEQUA_G_20131110150005

Source: WSJ

One thought on “Increasing Income Inequality”

  1. It would be interesting to adjust this data for those who are out of work. Is the problem that workers are not getting paid enough or that some of them are not working and being paid zero? Is it pay for jobs or having a job?

    Does the poorly growing economy not have enough new top executive jobs to lift top performers to higher levels as they advance in their careers?

    How much is that top category skewed by the huge incomes of some of the top digital start-ups? A billion here and a billion there can really up the average increase.

    So, this is an interesting statistic, but without context we can’t say what is means. And only interesting statistics get published in major newspapers, so it should not shock us with the WSJ publishing a shocking statistic like this.

    Bottom line, we need more jobs. Or even better we need to be owners of our own data and not give them to Facebook and Amazon for free. I read a book on this recently but I don’t have the title or the author’s name in my mind. What happens to our society when digital technology makes everything super cheap but most people have no job, no income and so can’t even afford the cheap things?

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