Here is what I think is a correct assessment of the new global aristocracy that owns a growing percentage of the world's wealth, and wants more. We think of peasants as agricultural workers. But that is the past. In the present day it is increasingly ordinary workers — both blue and white collar. The wealth differential now is even greater than it was in the 14th century. Click through to see the very useful graphs.
How You, I, and Everyone Got the Top 1 Percent All Wrong
DEREK THOMPSON – The Atlantic
For years, I've been making the same embarrassing mistake about U.S. economic inequality. Sorry.
I've written, over and over, that the most important divide in our wealth disparity was between the 1 percent and the 99 percent. For example, when I compared the evolution in investment income since the late 1970s, I often imagined a graph like this from the Economic Policy Institute, showing the 1 percent flying away from the rest of the country.
It turns out that that graph is somewhat misleading. It makes it look like the 1 percent is a group of similar households accelerating from the rest of the economy, holding hands, in unison. Nothing could be further from the truth.
A few weeks ago, I shared this graph (from the World Top Incomes Database) showing how the top 0.01 percent-that's the one percent of the 1 percent-was leaving the rest of the top percentile behind.