© 2024 WYPR
WYPR 88.1 FM Baltimore WYPF 88.1 FM Frederick WYPO 106.9 FM Ocean City
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations

Economic Recovery and the One Percent - 2/16/15

Emmanuel Saez, the economics professor from the University of California-Berkeley best known for analyzing IRS numbers that help characterize income inequality, recently released his preliminary estimates for 2013. 

Professor Saez has determined that the share of total U.S. income that goes to the top 1 percent, excluding capital gains, is 17.5 percent.  By this measure, the concentration of income among the wealthiest Americans remains at levels last observed nearly a century ago.  As pointed out by economics writer Justin Wolfers, the 17.5 percent figure is below the 18.9 percent share calculated by Professor Saez for 2012.  But it is important not to read into that too much since tax rates rose changed in 2013 and likely impacted the readings for both 2012 and 2013. 

It is therefore much better to focus on the average of the past two years, and that average continues to support the narrative that the economic recovery has largely benefited the rich.  After adjusting for inflation, the average income for the richest 1 percent has risen from $871,000 in 2009 to $968,000 over the 2012-2013 period.  By contrast, average incomes fell by a few dollars for the remaining 99 percent.

Anirban Basu, Chariman Chief Executive Officer of Sage Policy Group (SPG), is one of the Mid-Atlantic region's leading economic consultants. Prior to founding SPG he was Chairman and CEO of Optimal Solutions Group, a company he co-founded and which continues to operate. Anirban has also served as Director of Applied Economics and Senior Economist for RESI, where he used his extensive knowledge of the Mid-Atlantic region to support numerous clients in their strategic decision-making processes. Clients have included the Maryland Department of Transportation, St. Paul Companies, Baltimore Symphony Orchestra Players Committee and the Martin O'Malley mayoral campaign.