(Not) spreading the wealth
The income gap between the wealthy and the rest of the country has grown along with dramatic increases in CEO pay.
- Income shares
- The top 0.1%
- CEO pay
- Other countries
Growing share of income for the rich
Inequality in the U.S. has has grown steadily since the 1970s, following a flat period after World War II. In 2008, the wealthiest 10 percent earned almost the same amount of income as the rest of the country combined.
SHARE OF NATION'S INCOME Including capital gains
The top 0.1 percent of the population (those making about $1.7 million or more) saw the sharpest increase in income share, taking home 2.6% of the nation’s earnings in 1975 and 10.4% in 2008.
| INCOME LEVEL | NUMBER OF PEOPLE | AVERAGE INCOME | OVERALL CHANGE 1970-2008 | ||
|---|---|---|---|---|---|
| Top 0.1% | 152,000 | $5.6 million | +385% |  | |
| Top 0.1-0.5% | 610,000 | $878,139 | +141% |  | |
| Top 0.5-1% | 762,000 | $443,102 | +90% |  | |
| Top 1-5% | 6.0 million | $211,476 | +59% |  | |
| Top 5-10% | 7.6 million | $127,184 | +38% |  | |
| Bottom 90% | 137.2 million | $31,244 | -1% |  | |
Who makes up the top 0.1%?
Executives, managers (non-finance)
Finance, including management
Lawyers
Real estate
Medical
Other entrepreneur
Arts, media, sports
Math, engineering, technical
Other
Business operations (nonfinance)
Other skilled sales
Professors and scientists
Farmers and ranchers
In 2005, the top 0.1 percent of earners in the U.S. made upwards of about $1.7 million, including capital gains. Forty-one percent of these roughly 140,000 families had a breadwinner who was an executive, a supervisor or a manager.
Rising
executive pay
Executive pay began to grow around the same time as income equality in the U.S. and has increased about fourfold since 1970, while average wages for all workers have remained relatively flat. Defenders of executive pay levels say the higher salaries are justified as the size and profits of companies grow.
TOTAL CHANGE SINCE 1970
Compared with other countries
Although the gap between the top earners and everyone else has risen in several other nations, the growth has been more pronounced in the United States.
SHARE OF NATION'S INCOME
EARNED BY THE TOP 0.1%
*Based on the salary, bonuses and stock options of the three highest-paid officers in the largest 50 firms. ** Calculated from Bureau of Economic Analysis data. NOTE: All figures have been adjusted for inflation.
SOURCES: The World Top Incomes Database and reports by Jon Bakija, Williams College; Adam Cole, U.S. Department of Treasury; Bradley T. Heim, Indiana University; Carola Frydman, MIT Sloan School of Management and NBER; Raven E. Molloy, Federal Reserve Board of Governors; Thomas Piketty, Ehess, Paris; Emmanuel Saez, UC Berkeley and NBER. GRAPHIC: Alicia Parlapiano - The Washington Post. Published June 18, 2011.
