Where did all the money in the US go? According to the Economic Policy Institute in Washington DC, pre-tax income for the 400 richest American households grew by an eye-popping 409% from 1992 to 2007 and their after tax income grew by 476%.
The data does not extend beyond 2007 so we don't know exactly how these households have fared in the financial meltdown which started unfolding in late 2007. But you can bet they'll still be way in front.
All this is happening in a country where the number of people on food stamps has reached record numbers, affecting one in four American children. That's something I have talked about here. And despite the talk of recovery, that's unlikely to change in the short term. Markets have bounced on the news that US employers have cut fewer jobs than anticipated but let's not get carried away. Unemployment in the US is still 9.7% and twice as high if you take into account people who have given up looking for work or who are underemployed.
The bottom line is that the gap between rich and poor in the US is widening and academics say this will cause irreparable damage to US society, something I blogged about a few weeks ago here.
no comment untill now