(Not) spreading the wealth

The income gap between the wealthy and the rest of the country has grown along with dramatic increases in CEO pay.

Growing share of income for the rich

Inequality in the U.S. has has grown steadily since the 1970s, following a flat period after World War II. In 2008, the wealthiest 10 percent earned almost the same amount of income as the rest of the country combined.

SHARE OF NATION'S INCOME Including capital gains

The top 0.1 percent of the population (those making about $1.7 million or more) saw the sharpest increase in income share, taking home 2.6% of the nation’s earnings in 1975 and 10.4% in 2008.

INCOME LEVEL		NUMBER OF PEOPLE	AVERAGE INCOME	OVERALL CHANGE 1970-2008
Top 0.1%		152,000	$5.6 million	+385%
Top 0.1-0.5%		610,000	$878,139	+141%
Top 0.5-1%		762,000	$443,102	+90%
Top 1-5%		6.0 million	$211,476	+59%
Top 5-10%		7.6 million	$127,184	+38%
Bottom 90%		137.2 million	$31,244	-1%

 Compared with other countries

Although the gap between the top earners and everyone else has risen in several other nations, the growth has been more pronounced in the United States.

SHARE OF NATION'S INCOME
EARNED BY THE TOP 0.1%

SOURCES: The World Top Incomes Database and reports by Jon Bakija, Williams College; Adam Cole, U.S. Department of Treasury; Bradley T. Heim, Indiana University; Carola Frydman, MIT Sloan School of Management and NBER; Raven E. Molloy, Federal Reserve Board of Governors; Thomas Piketty, Ehess, Paris; Emmanuel Saez, UC Berkeley and NBER. GRAPHIC: Alicia Parlapiano - The Washington Post. Published June 18, 2011.

Who makes up the top 0.1%?

Executives, managers (non-finance)
Finance, including management
Not working or deceased
Lawyers
Real estate
Medical
Other entrepreneur
Arts, media, sports
Math, engineering, technical
Other
Business operations (nonfinance)
Other skilled sales
Professors and scientists
Farmers and ranchers

In 2008, the top 0.1% of earners made at least $1.7 million and $5.6 million on average, including capital gains. Forty-one percent of these 152,000 people were executives, supervisors and managers.

Rising
executive pay

CEO pay began to grow around the same time as income equality in the U.S. and has increased about fourfold since 1970, while average wages for all workers have remained relatively flat. Defenders of executive pay levels say the higher salaries are justified as the size and profits of companies grow.

TOTAL CHANGE SINCE 1970