How America became a 1% society

Bill Moyers in The Guardian:

The Greek historian Plutarch is said to have warned that “an imbalance between rich and poor is the oldest and most fatal ailment of a Republic.” Yet as the Washington Post pointed out recently, income inequality may be higher at this moment than at any time in the American past.

When I was a young man in Washington in the 1960s, most of the country’s growth accrued to the bottom 90% of households. From the end of the second world war until the early 1970s, in fact, income grew at a slightly faster rate at the bottom and middle of American society than at the top.

In 2009, economists Thomas Piketty and Emmanuel Saez explored decades of tax data and found that from 1950 through 1980 the average income of the bottom 90% of Americans had grown, from $17,719 to $30,941. That represented a 75% increase in 2008 dollars.

Since 1980, the economy has continued to grow impressively, but most of the benefits have migrated to the top. In these years, workers were more productive but received less of the wealth they were helping to create. In the late 1970s, the richest 1% received 9% of total income and held 19% of the nation’s wealth. The share of total income going to that 1% would then rise to more than 23% by 2007, while their share of total wealth would grow to 35%. And that was all before the economic meltdown of 2007-08.

More here.