As Jordan Weissman [12] demonstrated in the Atlantic last year, the top 1 percent and the top 10 percent capture more of our national income now than they did in the 1700s, before we won our nation’s independence. Inequality was worse by 1860, but is even worse today than in either century.
This country enacted a series of laws which enabled Americans to achieve social mobility. But in the wake of cuts to everything from education to childhood nutrition, and with the decline of the American middle-class, those opportunities are fading too.
Here’s one of the main reasons the middle-class is declining: With no strong counterforce representing employees, corporations are also amassing more wealth than ever. The charts Henry Blodget [13] made last year remain essentially unchanged: as corporations amass more and more wealth, they’re sharing less and less of it with workers in the form of wages.
As G. William Domhoff [14] shows, by the end of the Reagan era the percentage of national wealth going to the top 1 percent had returned to pre-1929 levels. It has continued to climb since then. A recent review of 2012 economic data shows, among other things, that the top 1 percent saw their incomes rise by a staggering 32 percent in one year—and that the top 10 percent captured more than half of our nation’s income for the first time since they started tracking this data a century ago.