A Generation of Widening Inequality

In the middle of the last century, national economic growth translated into a more broadly shared prosperity. As productivity increased and the economy expanded, income gains were relatively even across the distribution. In contrast, a disproportionate share of income gains in recent decades has accrued to the very top of the distribution, in spite of continued productivity gains. As a result, the gap between the incomes of those at the high end of the distribution and those at the low end and middle has widened significantly.