November 3, 2011

Inequality Trends In One Picture

Paul Krugman, writing for his NYT weblog:

"Just an addendum on the role of the top 1 percent versus the college-noncollege differential. Here, from the CBO report, are the changes, in percentage points, of the shares of income going to three groups."

Click through for the revealing graph.

The question being answered is whether the effect of a college education has made some Americans the beneficiary of increased wealth at the expense of the rest of the population over the past thirty or so years.

The answer is, "no." The redistribution of wealth, long a complaint of conservatives when it pushes money down the income ladder, has moved exclusively up the income ladder since Reagan took office. It essentially skips over those with a college education, who Krugman claims populate the top 20% of income earners in America, and lands squarely on the top 1%.

Welfare for the very rich? No wonder so many are occupying Wall Street.