Inequality, both regarding income and wealth, is slowly getting back to our national debate. The benefits of economic growth in the past three decades have increasingly been going to those at the top of the income distribution, while wages remain flat for the middle class or even slowly decline for the poor.
Although inequality has been trending up in most developed nations, the United States is an outlier on the magnitude of this shift. Consider this, using data from Atkinson, Piketty and Saez (original graph):
In this graph there are two outliers with growing inequality in the past two or three decades: Sweden (that goes from being extraordinarily equal to just very egalitarian) and US. In our case, the US goes from having more or less average levels of inequality to being far and beyond any other developed nation.
Today at the CLASS conference we gave a presentation on the rise of inequality both in the US and in Connecticut, offering a lot more data and graphs showing how things have changed in the country in the last 30 years, and offering some policy ideas on the effects of these growing disparities and how we can address them. You can download the Powerpoint from our presentation here (PDF) o you can have a look at the slides after the jump.
Inequality in Connecticut: