The Economic Policy Institute (EPI) reports that the wages of the top 1% have reached a new height—up 157% since 1979.
*Average annual wages in 2017 of the top 0.1%: $2,757,000.
They earn 343% more than they did in 1979.
*Average annual wages in 2017 of the top 1% (excluding the top 0.1%): $718,766.
They earn 157% more than they did in 1979.
*Average annual wages in 2017 of "the top 5%" (95th–99th tier, the top 5%–2%): $299,810.
They earn 69% more than they did in 1979.
*Average annual wages in 2017 of "the top 10%" (90th–94th tier, the top 10%–6%): $118,400.
They earn 44% more than they did in 1979
[That's 1.2% annualized wage growth, which is basically flat when you factor in inflation, though the top 10% has income other than wages and they tend to have at least slightly appreciating real estate, too—at least one home, probably in most cases only one home.]
*Average annual wages in 2017 of the bottom 90%: $36,182.
They earn 22% more than they did in 1979.
[Annualized that's only 0.6% annual growth in wages, far too little to keep up with inflation, and the bottom 90% is *not* asset-rich or likely to have income besides wages.]
For a look at the factors driving wealth inequality, see my post "Capitalism simply isn't working and here are the reasons why"
From that post:
Wealth inequality rises as
1) return on capital rises faster than both workers' wages and general economic growth (see chart #1, click to enlarge, and for more on the related issue of decreasing income mobility in the U.S. see "Inequality Is Not the Problem," Jeff Madrick, NYR Blog, 2014),
2) super-high-income workers (e.g., CEOs) reward each other with mega-salaries to "keep up with the other rich" (see chart #2 from "We're More Unequal Than You Think," The New York Review of Books, 2012),
3) inherited wealth and corporate gains aren't greatly taxed (compared to the early post-WWII era especially),
4) tax-reduction/-avoidance schemes abound especially for the rich who can afford the experts to manage their money globally, and
5) the cultural and societal insularity of the wealthy, their disconnectedness from the vast majority of those who are not exceedingly wealthy, combines with their money-driven power (e.g., campaign contributions and armies of lobbyists) to keep the system in place. Such power puts me in mind of the old "golden rule"—he who has the gold makes the rules.
Importantly, due largely to #4 above, the middle class ends up with a disproportionate share of the tax burden to keep the social safety net, defense, services (sanitation, policing, fire fighting), education, and transportation infrastructure in place, even though the services, education, and infrastructure benefit the mega-wealthy, too, directly or indirectly.
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