The Vicious Cycle of Income Inequality

THE SSSSS SSSS VICIOUS CYCLE OF INCOME IN EQUALITY American income WILL THE CYCLE CONTINUE AND inequality has returned to 1920's levels, USHER IN ANOTHER GREAT DEPRESSION? 19 2 0 ' s 1920's The "Roaring '20s bring high income to the wealthiest of Middle- and low-income Americans do not see a substantial income Americans, increase. 9 3 0 1930's The Great Depression Wealthy Americans Middle- and causes economic see income Low-income Americans collapse. decrease. see income decrease ..-- • LATE 1940's - E ARLY 1970's LATE 1940'S A period of growth begins. Wealthy Americans see steady income growth. EARLY 1970'S N Middle-class and low-income Americans see steady income growth. Rate of growth is approximately the same, keeping a narrow gap. E ARLY 1970' S- 20 0 o's INCOME GAP BEGINS WIDENING. Wealthy Americans see steady income growth. In 2004, the earned In 2005, the top 1% 19% 121 of Americans earned top | 21.2% of all income, 2 In 2000, the top 1% earned 20.8% a EARLY 1970's - 2000's m In 2004, the bottom 50% earned In 2005, the bottom 13.4% 50% of Americans earned 12.8% ncome. of all In 2000, the bottom 50% earned 13% a www 20/08 Middle-class and low-income Americans see sharp decline in income growth. Economic recession begins in 2008. PRESE NT O Wealthiest of Americans receive an even larger pre-tax share of the national income. Though they saw an income decrease in the 2008 recession, their income has PRESENT The top 1% of Americans account for 93% of economic bounced back 131 gains in 2010. (31 Income for middle-class and low-income Americans has continued to decrease since the recession. 31 O Income inequality levels are now back to 1920's levels. As income inequality grows, the economy Conversely, as the economy weakens, income inequality weakens 3 increases, Ttotal bankruptcy" SOURCES: [1]http://www.cbpp.org/cms/index.cfm?fa=view&id=3629 [2]http://archive.truthout.org/article/income-inequality-gap-widens- highest-since-1920s [3]http://wwwnytimes.com/2012/10/17/business/economy/income - inequality-may-take-toll-on-growthhtmLl?pagewanted-all THE SSSSS SSSS VICIOUS CYCLE OF INCOME IN EQUALITY American income WILL THE CYCLE CONTINUE AND inequality has returned to 1920's levels, USHER IN ANOTHER GREAT DEPRESSION? 19 2 0 ' s 1920's The "Roaring '20s bring high income to the wealthiest of Middle- and low-income Americans do not see a substantial income Americans, increase. 9 3 0 1930's The Great Depression Wealthy Americans Middle- and causes economic see income Low-income Americans collapse. decrease. see income decrease ..-- • LATE 1940's - E ARLY 1970's LATE 1940'S A period of growth begins. Wealthy Americans see steady income growth. EARLY 1970'S N Middle-class and low-income Americans see steady income growth. Rate of growth is approximately the same, keeping a narrow gap. E ARLY 1970' S- 20 0 o's INCOME GAP BEGINS WIDENING. Wealthy Americans see steady income growth. In 2004, the earned In 2005, the top 1% 19% 121 of Americans earned top | 21.2% of all income, 2 In 2000, the top 1% earned 20.8% a EARLY 1970's - 2000's m In 2004, the bottom 50% earned In 2005, the bottom 13.4% 50% of Americans earned 12.8% ncome. of all In 2000, the bottom 50% earned 13% a www 20/08 Middle-class and low-income Americans see sharp decline in income growth. Economic recession begins in 2008. PRESE NT O Wealthiest of Americans receive an even larger pre-tax share of the national income. Though they saw an income decrease in the 2008 recession, their income has PRESENT The top 1% of Americans account for 93% of economic bounced back 131 gains in 2010. (31 Income for middle-class and low-income Americans has continued to decrease since the recession. 31 O Income inequality levels are now back to 1920's levels. As income inequality grows, the economy Conversely, as the economy weakens, income inequality weakens 3 increases, Ttotal bankruptcy" SOURCES: [1]http://www.cbpp.org/cms/index.cfm?fa=view&id=3629 [2]http://archive.truthout.org/article/income-inequality-gap-widens- highest-since-1920s [3]http://wwwnytimes.com/2012/10/17/business/economy/income - inequality-may-take-toll-on-growthhtmLl?pagewanted-all