Unequal Growth

For more on gross income inequity we see today the report, released by the Pew Research Center which found that the mean net worth for the 7 percent of American households at the top of the wealth distribution rose by 28 percent between 2009 and 2011.

Pew-wealth-recovery-0-3

Here’s a look at how the net worth has changed relative to wealth groups

On the other hand wealth for the remaining 93% fell by 4% for the same period.

We don’t have to read too deep into the report to see where the differences are. We talked about the distinct advantage those who simply invest have over those who work within the tax system. In this Pew report we see again where investing (i.e. already having enough not to have to work) verses working resulted in another large bound ahead.

Pew Share of wealth-recovery-0-2

And here is the change in shares from 09 to 2011

 

The American Dream has become less of how hard one works and more of how the tax structure is weighted toward those who already have over the have-nots.

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