Policy Note 2015/4 | March 2015
When a Rising Tide Sinks Most Boats
Trends in US Income Inequality
In the postwar period, with every subsequent expansion, a smaller and smaller share of the gains in income growth have gone to the bottom 90 percent of families. Worse, in the latest expansion, while the economy has grown and average real income has recovered from its 2008 lows, all of the growth has gone to the wealthiest 10 percent of families, and the income of the bottom 90 percent has fallen. Most Americans have not felt that they have been part of the expansion. We have reached a situation where a rising tide sinks most boats.
Economic cycles Economic expansions Fiscal policy Full employment policy Income distribution Income inequality Labor markets Wage inequality