How Did the 1 Percent Get Ahead So Fast?
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Dec. 10 (Bloomberg) -- From 2009 to 2012, the U.S.experienced a significant economic recovery, in which averagereal income growth jumped by 6 percent. That’s the good news.The bad news is that almost all of that increase -- 95 percent -- was enjoyed by those in the top 1 percent of the incomedistribution.
To appreciate this remarkable finding, set out in animportant paper by University of California economist EmmanuelSaez, we need to add some context. From 2007 to 2009, therecession produced a 17.4 percent decline in average real income-- the largest drop since the Great Depression. Every incomeclass was hit hard, but in percentage terms, those at the top ofthe economic ladder suffered the biggest decreases.