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New Data Reveal Unprecedented Income Inequality |
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From Economic Policy Institute: Newly released data from two separate sources reveal just how skewed the distribution of economic growth has been over the current recovery. Data from the Bureau of Economic Analysis through the third quarter of 2006 show that a historically high share of corporate income is going into profits and interest (i.e., capital income) rather than employee compensation. And a newly released Congressional Budget Office (CBO) analysis of household incomes shows that a greater share of this capital income goes to the richest households than at any time since the CBO began tracking such trends. In other words, our economy is producing more capital income and that type of income is more likely to go to those at the very top of the income scale. Since the upper 1% owns a disproportionate share of capital assets, this growth of capital income necessarily improves their income growth relative to the rest of the population, thereby fueling income inequality. Get the facts at a glance in this week's Snapshot. Read more from this post.
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