2012: Best year for US 1% since 1928


A new study has shown that the income gap between the richest 1 percent in the United States and the rest of the American people reached its widest point in 2012 since 1928.

An analysis of the Internal Revenue Service™s data by economists at the University of California, Berkeley, the Paris School of Economics, and Oxford University has shown that the richest 1 percent in the US collected 19.3 percent of household income in 2012, their biggest share since 1928.

The wealthiest 10 percent also collected 48.2 percent of the total earnings in 2012.

The richest 1 percent of American households had incomes exceeding $394,000 and the richest 10 percent had incomes above $114,000.

The income figures in the study included wages, pension payments, dividends, and capital gains from selling stocks and other assets.

The study also showed that the incomes of the top 1 percent of US earners increased nearly 20 percent in 2012 while the remaining 99 percent of American earners saw only a 1 percent increase in their incomes.

According to the analysis, income inequality in the US has been widening steadily since the early 1980s.

Among the reasons cited for the widening income inequality in the US was a decrease in the percentage of American workers represented by unions.

In 1983, 23.3 percent of US workers were represented by unions. That number dropped to 12.5 percent in 2012.


Copyright: Press TV