Via this item from Pavlina Tcherneva comes the graphic below that goes a long way in explaining why there’s been so much fuss about growing income inequality.
Anyone with a good sense for statistics surely realizes the reason this data is so compelling is because it represents incremental change rather income data in absolute terms. It’d be interesting to see this same data broken down by the 1 percent versus the 99 percent.
While both fiscal policy and monetary policy are key drivers behind the trends shown above, one need look no further than this chart to understand just about everything there is to understand about the role of the Federal Reserve in all of this.
Images: via Flickr (licence attribution)
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