Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
April 16, 2014

The One Percent: The New Indigent Class

0211 spj RICH web artboard 1 The One Percent: The New Indigent Class

In 2012, “our 0.1 percent household made about 206 times, and our 1 percent household about 41 times, what our average household did. That gap has yawned over time. In 1990, for instance, the same multiples were 87 and 21. In 1980, they were 47 and 14,” the New York Times reports.

What are the causes? “Executives seem to have managed to co-opt passive corporate boards to extract fatter and fatter compensation packages, for one … Earnings have also taken off toward the stratosphere in the world of finance, helping account for much of the rest of the rise of the 1 percent … The higher a household is on the income scale, the more likely it is that a big chunk of its earnings come from investments rather than wages.”

  • Unsphexish

    Interesting that the graph shows a tremendous increase right about the time Reagan slashed the top tax bracket. Gosh, I wonder if that has anything to do with it?

    • nifongnation

      Can you do the Mexican hat dance?

  • CVBeethoven

    How can you tell? The x-axis doesn’t appear to have dates associated with it. At least, not on my computer screen

  • Brambles

    I’m thinking the top 1% of the top 1% receive most of their income from investments. Every one per-center I know works their behinds off, is putting kids through college, has a big mortgage, and pays userous rates of taxes to Uncle Sam, and the country cries out for More, More, More!!! Maybe it’s time to slash the budget, cut useless programs, go after fraud, reduce the size of the federal government, you think?

Sign In

Forgot password?

Or

Subscribe

Receive daily coverage of the people, politics and personality of Capitol Hill.

Subscription | Free Trial

Logging you in. One moment, please...