Monday, April 27, 2009

History of the Rich getting Richer

It doesn't just seem that way.

The top prize for young economists just went to the guy who has demonstrated just how much inequality, after declining markedly from the Second World War to the 1970s, started rising again in that decade and has been on a tear ever since.

The top tenth of the American population now controls just about half of American wealth, the largest share since 1917. It was about a third from the 'forties to the 'seventies.

The theory that income equality can be expected to grow with longterm economic development goes by the boards; it's all about political choices. But the data here are for the United States, not for Canada and not for developed countries in general.
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