Words by Tess Becker
There have been years of a growing wealth gap in the United States. According to the Pew Research Center, from 1983 to 2016, the share of wealth going to upper-income families increased from 60% to 79%.
On the other side of the coin, the share held by middle-income families has been cut nearly in half, falling from 32% to 17%. Lower-income families had only 4% of the aggregate wealth in 2016, down from 7% in 1983.
Income and wealth inequality is higher in the United States than in almost any other developed country but there might be light at the end of the tunnel.
The growth is slow but the incomes of people in the bottom half of income distribution grew by 4.5% in the last calendar year, much faster than the 1.2% average income growth of all Americans, according to Realtime Inequality.
Income for people in the bottom average income for the lowest-earning 50% of Americans increased by more than 10% between 2020 and 2022, faster than any group outside the top 1% as well a Berkley paper says.
The improving labor market is what’s shrinking the income gap, as laborers have more options for work usually at higher pay.
“What we’re witnessing since the late 2010s—significant growth rates for low-wage workers—is a notable break from the trend that has prevailed since the 1980s,” Gabriel Zucman, one of the authors of the paper said.
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