The Most Lopsided Economic Recovery On Record
Robert B. Reich
Luxury retailers are smiling. So are the owners of high-end restaurants, sellers of upscale cars, vacation planners, financial advisers, and personal coaches. For them and their customers and clients the recession is over. The recovery is now full speed.
But the rest of America isn't enjoying an economic recovery. It's still sick. Many Americans remain in critical condition.
Yet it's almost a certainty that all the gains went to the top 10 percent, and the lion's share to the top 1 percent. More than a third of the gains went to 15,600 super-rich households in the top one-tenth of 1 percent.
We don't know this for sure because all the data aren't in for 2011. But this is what happened in 2010, the most recent year for which we have reliable data, and there's no reason to believe the trajectory changed in 2011, or that it will change this year.
In fact, recoveries are becoming more and more lopsided.
The top 1 percent got 45 percent of Clinton-era economic growth, and 65 percent of the economic growth during the Bush era.
According to an analysis of tax returns by
In fact, most in the bottom 90 percent lost ground. Their average income was
Meanwhile, employer-provided benefits continue to decline among the bottom 90 percent, according to the
If you're among the richest 10 percent, a big chunk of your savings is in the stock market where you've had nice gains over the last two years. The value of financial assets held by Americans surged by
But if you're in the bottom 90 percent, you own few if any shares of stock. Your biggest asset is your home. Home prices are down more than a third from their 2006 peak, and they're still dropping. The median house price in February was 6.2 percent lower than a year ago.
Republicans would rather not talk about widening inequality to begin with. The reverse-Robin Hood budget plan just announced by
We can't possibly grow faster if the vast majority of Americans, who are still losing ground, don't have the money to buy more of the things American workers produce. There's no way spending by the richest 10 percent -- the only ones gaining ground -- will be enough to get the economy out of first gear.
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The Most Lopsided Economic Recovery On Record | Politics
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