Income Inequality

I read an article in the Economist called “The 99 percent” and was written on October 26, 2011. The article discusses that if the top 1% of earners are excluded, income inequality in the US has not changed much in the last twenty years. The article goes on to talk about how a system that works for the very rich has returns that are disappointing for the rest of the population. The article also includes a graph of “US real average after-tax income” which displays just how big the gap is between the top 1% and the rest of the population. This reminded me of the graph from lecture that showed falling income inequality between the top 1% and everyone else in the 1930s and 1940s and rising inequality beginning in the 1980s.

Source:

http://www.economist.com/blogs/dailychart/2011/10/income-inequality-america