The only thing that’s recovered is the top 1% of income earners:
Emmanuel Saez, the Berkeley economist who (with Thomas Piketty, an economist at the École d’economie de Paris) first mapped the enormous 34-year run-up in income share for America’s top 1 percent, came up last year with a statistic that was widely quoted by people who care about rising income inequality. In 2010, the first year of economic recovery after the 2009-2010 recession, 93 percent of all pre-tax income gains went to the top 1 percent, which in that year meant any household making more than about $358,000. This was, I quipped at the time, a members-only recovery. No 99-percenters need apply.
Saez has now updated this statistic to include 2011. When you look at the economic recovery’s first two years, the top one percent (which by 2011 meant any household making more than about $367,000) captured 121 percent of all pre-tax income gains.
How is it even possible for the one percent to capture more than 100 percent of all income gains since the last recession? Looked at from one point of view, it’s not. It is enough to say that in 2010 and 2011 all of the recovery went to the one percent. If you were in the bottom 99 percent, as by definition nearly all of us are, you didn’t see a dime of that recovery.
And yet we keep voting in the same group of rascals election after election. I think that’s explainable only due to a perception that the only alternative is a different group of rascals.
Is the perception right or wrong?