The Rich Get Richer and The Poor Get Poorer – An End to The American Dream?


The graphic and data below from Bloomberg provide a stark reminder of how divergent income growth in America has been. A particularly timely topic during an election year where income inequality has had such a significant focus. The underlying data, showing a fall off in average family income, challenges the very notion of the American dream where each generation does better than the last. Or looking at it in a different perspective, America is great if you are in a higher income group but not so much for those in lower income groups.

The earnings gap between rich and poor Americans was the widest in more than four decades in 2011, Census data shows. In 2010, the top 1 percent of U.S. families captured as much as 93 percent of the nation’s income growth. Earnings fell 1.7 percent for the 96 million households in the bottom 80 percent – those that made less than $101,583. From 1979 to 2007, about $1.1 trillion in annual income shifted to the top 1 percent of Americans – more than the entire earnings of the bottom 40 percent.

Change in Household Income Between American Households

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3 Comments on "The Rich Get Richer and The Poor Get Poorer – An End to The American Dream?"

[…] The middle class will have to work harder and the poorest will get screwed the most. This is why income inequality is just a risk for economies. Poverty for the most part destroys the social fabric of society and […]

[…] people who did not attend college, and younger households. Sadly this will further drive income inequality as income levels for more affluent groups has recovered […]

[…] prices has favored the well-off more than the less fortunate which continues to exacerbate income inequality in America. This is because those with the cash, the rich or well-off, were able to ride out the recession and […]


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