The Rich Just Keep Getting Richer

Recently, economists Thomas Piketty and Emmanuel Saez updated their study on income distribution in the U.S. They found that from 2004 to 2005, “the average income of the top 1 percent of households increased by $102,000 (adjusted after inflation)”—a jump of 19.3% Yet, the average income of the bottom 90% of households increased by a mere $250.

This reflects a growing trend in the American distribution of wealth. As President Bush claimed at the beginning of this year, “I know some of our citizens worry about the fact that our dynamic economy is leaving working people behind. We have an obligation to help ensure that every citizen shares in this country's future. The fact is that income inequality is real; it's been rising for more than 25 years. ”

Interestingly enough, there has yet to be any significant discussion of legisla tavely fixing this disparity, even though former Federal Reserve Chairman Alan Greenspam claimed two years ago, “[There is a] really serious problem here, as I’ve mentioned many times before this [House] committee, in the consequent concentration of income that is rising...”

Raising the minimum work wage may have been an attempt to address this problem, but the causes of this problem (diminished union presence, globalization, surging CEO pay) have not been solved.