Paul Krugman on fall and rise of inequality

Paul Krugman has an interesting blog introduction charting the *fall and rise* (intentional inversion of the traditional phrase) of inequality over the last 100 years in America.

 Krugman concludes that the great recent run-up of inequality is as much political as some inevitable consequence of technology and globalization and he hopes the precursor of a poliitcal backlash that pushes for greater inequality. 

He also has a nice graphic charting the ratio of share of wealth of the top 10% of Americans to the bottom 90% over time.  The chart shows the Great Compression of inequality under FDR, the long period of Middle Class America from 1940 through the early 1980s and then the dramatic run-up in inequality (*The Great Divergence*) since then.

There has not been strong evidence that inter-generational mobility has dramatically declined over the past generation while income inequality soared, but we are exploring early evidence that today’s lower-class youth may face dramatically lower equality of opportunity than in the past.

Krugman’s blog post can be found here.


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