Obama’s Economic Recovery for the 1%

The economy has supposedly been in recovery for two years now and President Obama never misses an opportunity to talk up that recovery but as it turns out the wealthy are the ones doing all the recovering.

In 2010, the first full year since the end of the Great Recession, the top 1 percent of Americans took in 93 percent of all the income gains that year, leaving the other 7 percent of gains to trickle down to the other 99% of U.S. workers.

Emmanuel Saez, a Berkeley economist, co-created a resource called the World Top Incomes Database. Saez and his colleagues crunched the data on income growth from 2010, the most recent year available, and found that it was incredibly, and unfortunately predictably, one sided.

While much of the country is struggling to maintain, with a growing number of people on the verge of poverty or already there, the rich continue to get richer.

Income for most workers has barely risen in 3 decades, while the top 1 percent’s income has almost triple. Economists and other experts say that could be the result of any number of factors, including the decline of labor unions and tax policies such as the Bush tax cuts, which were extended by Obama, that favor the wealthy.

A 2011 study states that income inequality is a major barrier to economic growth.

 

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