Sunday, April 6, 2014

Wealth and Social Mobility in America


“What is going on?...Most likely, your answer lies in the nature of America’s inequality, whose main characteristic is the soaring share of overall income going to the top 1% (from 10% in 1980 to 22% in 2012). The correlation between vast accruing to a tiny elite and the ability of people to move between the rest of the rungs of the income ladder may be small—at least for now.

 

“For a start, since the gap between top and bottom has widened, the consequences of an accident of birth have become bigger. Second, if the gains of growth are going mostly to the top, that bodes ill for those whose skills are less in demand. Many economists worry that living standards for the non-elite will stagnate for a long time. Third, although social mobility has not changed much over time, it varies widely from place to place.”

 

From The Economist, February 1, 2014, page 23

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