There has been a strong and troubling shift in market rewards for a small minority relative to the rewards available to most citizens. A recent Congressional Budget Office study found that incomes of the top 1 percent of the U.S. population (adjusted for inflation) rose 275 percent from 1979 to 2007, while income for the middle class grew only 40 percent. Even this dismal figure overstates the fortunes of typical Americans. In 1965, only one in 20 men ages 25 to 54 was not working; by the end of this decade, it is likely to be one in six, even if a full cyclical recovery is achieved.
Another calculation suggests that if the income distribution had remained constant from 1979 to 2007, incomes of the top 1 percent would be 59 percent, or $780,000, lower and that incomes among the bottom 80 percent would be 21 percent, or more than $10,000, higher.
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