Thursday, September 21, 2006

Increasing Income Inequality


I have seen a lot of blogging about inequality lately. The above chart is derived from data at http://elsa.berkeley.edu/~saez/TabFig2004prel.xls. By subtracting the top one percent (bottom line) from the top ten percent (top line), I get roughly the professional class. ($91K to $282K) . I observe that something happened in 1987 and whatever it was only included the elite top 1 percent. If the Bush tax cuts have a significant affect, it does not show in this chart because of the volatility back to 1987.