A new report from the Congressional Budget Office (CBO) found the gap between the nation’s richest Americans and those within the middle class widened significantly over a period of 28 years. According to the report, between 1979 and 2007, the average income for the nation’s top 1 percent nearly tripled, while the household income of middle class Americans grew by less than 40 percent.
Top 1 Percent of Rich Show Income Grow of 275 Percent
The CBO report revealed staggering numbers this week as it showcased just how much the gap has widened between the top 1 percent of the population and the rest of the country in terms of wealth.
The highest-paid Americans saw their average inflation-adjusted household income grow by 275 percent over the 28-year period. In contrast, the remainder of the population’s richest one-fifth saw their incomes grow by about 65 percent.
As for middle class earners, incomes grew only 40 percent. Low-income Americans suffered the most, seeing a very slight increase of 18 percent between 1979 and 2007, according to the CBO study based on IRS and Census data.
Income Gap Saw No Redistribution of Wealth to Middle Class
In addition to calling to attention to the fact that there were large disparities in the growth of incomes across earning tiers, the CBO report revealed that government policy did little to redistribute wealth as high incomes ballooned in the country.
“The rapid growth in average real-household income for the top 1 percent of the population was a major factor contributing to the growing inequality in the distribution of household between 1979 and 2007,” the report noted. “Shifts in government transfers and federal taxes also contributed to that increase in inequality.”
This rising disparity between the rich and the rest of the nation’s middle and lower class is what, in part, spurred the Occupy Wall Street demonstrations in Manhattan on September 17. Continued movements raising awareness about the widening income gap have sent Occupy Wall Street international, in an effort to protest corporate greed and the unfair distribution of wealth.
Protesters are referring to themselves as “the other 99 percent,” suggesting they represent the population outside of the top 1 percent. The demonstrations are expected to continue until protestors are satisfied that lawmakers have recognized their demands for economic equality.
