1. Income and Wealth Disparity in the US
CIS Block

2. Classes in the US Upper class– accumulated wealth vs. “working rich”
Middle class– 60%, $31,000-$188,000
More educated
Older
Racially diverse
Immigrants
Lower class
Poverty line-- $24,036 in 2015
Poverty rate– falling
26% in 1967
15% in 2015

3. Changes in the middle class in the us
Early income inequality in US– income tax 1913
Peak of income inequality
Top 1% owned 19.6% of income
Union membership at 10%
Income equality– 1940’s
Labor productivity doubled
High top marginal tax rate
33% union membership
Top 1% owned less than 10% of income
Consequences?

4. Changes in the middle class in the us continued
1960’s and 70’s– changes in union membership and regulations
Top incomes began growing much faster than middle or bottom
By 2011, union membership at 11.3%
Top marginal tax rates in the 30%’s
Top 1% owns about 20% of income, top 3% owns half of wealth

5. Why the middle matters Economic success
Education = highly-trained human capital
Market for demand
Innovation and small business
Political/ social “goods” for a strong economy, i.e. infrastructure, regulations, etc.

6. International trends International changes
Percentage of middle class in the world
North America 18%
Europe 36%
Asia 28%
Africa 8%
Central/ South America 10%
International changes
Denmark– %, %
France– %, %
China– %, %
US– %, %
Strongest economies have large middle classes

7. Fixing the problem
Regulations
Taxes
Trade
Education
Innovation

8. Sources Cheatsheet.com
“The Middle Class is Shrinking: Why Does It Matter?” by Michael Sliwinski
Cbpp.org
“A Brief History of Income Inequality in the United States” by Matthew Johnston