household income inequality in the USA

The Federal Reserve has just released its Survey of Consumer Finances for the year 2013. ….

The most striking finding is that the median American family earned 5 per cent less in 2013 than in 2010 after inflation even though the average American family took home 4 per cent more.

The discrepancy can be explained by the fact that only people in the top tenth of the income distribution experienced any real income gains since 2010. Put another way, more than all of the growth in real GDP went to a very small subset of the population while everyone else became worse off.

Matthew C Klein, “US income and wealth inequality facts of the day“, FT Alphaville blog, 4 September 2014.

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