41. Why they are talking so little about rising inequality

 Over the last 10 years income inequality has been increasing in many countries, especially in the US. This NYT graphics shows the details. Median family income in the US has stagnated since around year 2000 (top panel). The change in median income over a 11-year long period (for example over 2000-2011) was, until 2008, always positive with the exception of a minimal drop in the 1981-82 recession. It has been negative in the last three years (middle panel).

The article discusses the reasons and is worth reading. Here I just provide a list:

• digital revolution= education matters
• education - "US has lost its once-large global lead
• globalization which eliminated a lot of well-paying industrial jobs
• automation - also eliminated a lot of well-paying industrial jobs
• relative decline in earnings of low skilled workers - record earnings gap between college graduates and others; 
• unemployment rates: 11.3% no high school, 8.7% high schoo graduates, 6.5% some college, 4.1% bachelor's degree

 Immigration and minimal wages did not appear to matter much.

But there is another explanation for which the article provides a graphic (bottom panel)
Almost all benefits of economic growth went to the rich (bottom panel). Since 1980: income of the top 0.01% tripled, of the top 0.1% more than doubled, for the top 1% increased by 64%. Median income increased by only 11%.
Of course income is interrelated with the above factors.

Think whether inequality is beneficial or detrimental to the economy. One answer in posting 42.