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Economic Growth in the US
Article

Economic Growth in the US

A Tale of Two Countries

Vox, 2017

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Editorial Rating

9

Qualities

  • Analytical
  • Innovative
  • Eye Opening

Recommendation

Using a new set of metrics, economists Thomas Piketty, Emmanuel Saez and Gabriel Zucman show that income inequality in the United States is even worse than many people thought. With half the American population stagnating while others have soared up the economic ladder, it is little wonder that politics as usual has taken a beating. getAbstract recommends this eye-opening article to anyone interested in trends in US income inequality.

Take-Aways

  • The wealthiest Americans have enjoyed substantial income growth since the 1970s, while the bottom 50% of earners has seen essentially no change.
  • In 2017, thanks largely to capital income and inheritances, the top 1% in the United States makes 81 times as much as the bottom 50%, an income chasm that rivals that of Burundi or of the Democratic Republic of Congo.
  • Those at the bottom income rung have similar pre- and post-tax incomes, which means they pay as much in taxes as they get in cash transfers though government programs.

About the Authors

Thomas Piketty is a professor at the Paris School of Economics. Emmanuel Saez is a professor at the University of California, Berkeley. Gabriel Zucman is an assistant professor at the London School of Economics.