Greg Mankiw points out that we've been forgetting about a demographic that has been hit extra hard by the economic downturn... the rich:
Here is a fact that you might not have heard from the Occupy Wall Street crowd: The incomes at the top of the income distribution have fallen substantially over the past few years.That's right kids... in 2009, the top 1% of earners made only 13.2x more on average than the rest of the top 50% (i.e. by definition those that are themselves better off than the average), down from a peak of 16.3x in 2007. Ignore the fact that this is still almost twice the level seen in the early 1980's.
I should also point out that the title of his post is "The Rich Get Poorer", so before I sign off why don't we quickly take a look at the definition of poorer:
- Having little or no wealth and few or no possessions.
- Lacking in a specified resource or quality: an area poor in timber and coal.
- Not adequate in quality; inferior.
- Lacking in value; insufficient.
- Lacking fertility.
- Undernourished; lean.
- Eliciting or deserving pity; pitiable.
Way to show those Occupy Wall Streeters some perspective!
Source: Tax Foundation