Yesterday’s post in our series showed that average incomes nearly quadrupledbetween 1979 and 2007 for the top 1 percent of households, while growing much more modestly for households in the middle and bottom of the distribution.
Yesterday’s post showed that the era of shared prosperity ended in the 1970s and highlighted the widening of income inequality since then. Today, we’ll take a look at what has happened to income since 1979, using the comprehensive data in the Congressional Budget Office’s (CBO) recent report on inequality.
To provide some historical context to the current public discussion of income inequality, we’re releasing a series of posts this week that examine trends in income inequality in recent decades and outline different data sources to examine the issue. The broad facts of income inequality over the past six decades are easy to summarize: