How The Richest Get Even Richer
David Cay Johnston reveals how the super-rich have pocketed the vast majority of the gains from the economic recovery, in his new column, “The Richest Get Richer:”
The aftermaths of the Great Recession and the Great Depression produced sharply different changes in U.S. incomes that tell us a lot about tax and economic policy.
The 1934 economic rebound was widely shared, with strong income gains for the vast majority, the bottom 90 percent.
In 2010, we saw the opposite as the vast majority lost ground.
National income gained overall in 2010, but all of the gains were among the top 10 percent. Even within those 15.6 million households, the gains were extraordinarily concentrated among the super-rich, the top one percent of the top one percent.
Just 15,600 super-rich households pocketed an astonishing 37 percent of the entire national gain.
The different results in 1934 and 2010 show how a major shift in federal policy hurts the vast majority and benefits the super-rich.