I just finished a post that explained, in part, the rise of income levels of the 1%:
…the primary source of income of the wealthy is the market and not salary.
It’s important to point this out as our current administration continues to rail against income disparity all the while pushing for policies that help contribute to the “problem” all the while.
But check out a recent post from AEI:
During his economic speech yesterday, President Obama again suggested that the typical US middle-class family has seen no economic progress over the past 30 years:
Because even though our businesses are creating new jobs and have broken record profits, the top 1 percent of Americans took home 20 percent of the nation’s income last year, while the average worker isn’t seeing a raise at all. In fact, that understates the problem. Most of the gains have gone to the top one-tenth of 1 percent. So in many ways, the trends that have taken hold over the past few decades of a winner-take-all economy, where a few do better and better and better, while everybody else just treads water or loses ground, those trends have been made worse by the recession.
Now I have debunked this claim several times. And now so has the US Census Bureau. The above chart, from the agency’s new income and poverty report, clearly shows real median household income indeed rose over the Long Boom of 1983 through 2007. And remember, the Census Bureau is just tracking pre-tax, pre-transfer, non-fringe benefit market income. As agency itself concedes: “The money income measure does not completely capture the economic well-being of individuals and families.”