Go to
Table of Contentschapter 7 (excerpt):
Where's the Prosperity?
Don’t worry though, those in the top 5.8 percent have done pretty well. Those in the top 0.3 percent have nearly tripled their money during the same 21 year period. For every dollar of AGI they began with in 1976, they now have nearly three dollars. Some of that gain has come from being in more lucrative professions. We will see how sweetheart tax breaks — that were piggybacked with the smaller tax cuts for the rest of us — passed by their friends in Congress, have allowed each of the few mega-rich to save hundreds of thousands annually, which they have then used to make even more money the following year. Figure 6 (pg. 41) clearly illustrates who are the big winners in terms of increase in adjusted gross income for the 21 year period of 1976-1997.
What has happened to the American dream for the 71 percent of Americans who make up the middle class and most of the wealthy income earners (those in the 23.1% to 94.2% income range)? We have basically been treading water. The net result of our past 21 years of effort has been an average decline of 1%. When that is contrasted to the 196% gain reported by the top 0.3 percent, it becomes obvious there is definitely something very wrong with the system. The last two decades have been a time where accepting the generalities of the Guardians of the Privileged without examining the fine print has cost most of the middle class an incredible amount money. And the bleeding continues.