The United States of Inequality

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From World Socialist Web Site

Earlier this month, economists Thomas Piketty, Emmanuel Saez and Gabriel Zucman, leading experts on global inequality, released a groundbreaking study on the growth of income inequality in the United States between 1946 and 2016. While the economists’ earlier studies made substantial advances in documenting inequality in the United States, the most unequal developed country in the world, this is the first survey claiming to “capture 100 percent of national income,” including the impact of taxation, social programs such as Medicare and Medicaid, and income from capital gains. The result is a fuller picture of social inequality in the United States than any previous attempts. The conclusions are staggering, revealing that over the course of the past four decades there has occurred one of the most rapid upward redistribution of income in modern history. The economists found that the pre-tax share of national income received by the bottom half of the US population has been cut nearly in half since 1980, from 20 percent to 12 percent, while the income share of the top one percent has nearly doubled, from 12 percent to 20 percent. “The two groups have basically switched their income shares,” the authors note, “with 8 points of national income transferred from the bottom 50 percent to the top 1 percent…

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