The Rise of Income Inequality in the United States

When a candidate like Bernie Sanders promises free health care and free education, many Americans have jumped at the idea of voting for him. Why? Many Americans feel something radical must happen in order to turn wealth inequality around. Here are 3 Trends in wealth inequality in the United States.

Income inequality in the United States has followed a U-shaped trend since 1913. The low-point in the wealth inequality graph occurs right around 1980. This shows that income equality was its lowest at that point than it was in the last hundred years. Most of the growth in the top 10% and top 1% can be attributed to the growth of the top 0.1%. The top 0.1%’s share of wealth has risen from 7% in the late 1970s to 22% in 2012 (most recent data available). The rise of the top 1%’s concentration of taxable income rises dramatically at the time of the Tax Reform Act of 1986 This change reflects changes in tax avoidance rather than in the distribution of true economic value

2.  The wealth share of the bottom 90% …

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