Rich are getting richer, the rest of us are getting poorer

A broken rocord, but is anybody listening?

Income Inequality, and Its Cost

By ANNA BERNASEK

INEQUALITY has always been part of the American economy, but the gap between the rich and the poor has recently been widening at an alarming rate. Today, more than 40 percent of total income is going to the wealthiest 10 percent, their biggest share of the nation's pie in at least 65 years. The social and political repercussions of this disparity have been widely debated, but what about the effects on the economy?

Oddly, despite its position in the political debate, the question has received little attention from economists. Mostly, they have focused on measuring income inequality and establishing its causes. Some research has been done, however, and the results, including insights from related disciplines like psychology and political science, are disturbing.

(The article is here.)