(Not) spreading the wealth

The income gap between the wealthy and the rest of the country has grown along with dramatic increases in CEO pay.

Income shares

The top 0.1%

CEO pay

Other countries

Growing share of income for the rich Inequality in the U.S. has has grown steadily since the 1970s, following a flat period after World War II. In 2008, the wealthiest 10 percent earned almost the same amount of income as the rest of the country combined. SHARE OF NATION'S INCOME Including capital gains The top 0.1 percent of the population (those making about $1.7 million or more) saw the sharpest increase in income share, taking home 2.6% of the nation’s earnings in 1975 and 10.4% in 2008. INCOME LEVEL NUMBER OF PEOPLE AVERAGE INCOME OVERALL CHANGE 1970-2008 Top 0.1% 152,000 $5.6 million +385% Top 0.1-0.5% 610,000 $878,139 +141% Top 0.5-1% 762,000 $443,102 +90% Top 1-5% 6.0 million $211,476 +59% Top 5-10% 7.6 million $127,184 +38% Bottom 90% 137.2 million $31,244 -1%

Who makes up the top 0.1%? Executives, managers (non-finance)

Finance, including management

Lawyers

Real estate

Medical

Other entrepreneur

Arts, media, sports

Math, engineering, technical

Other

Business operations (nonfinance)

Other skilled sales

Professors and scientists

Farmers and ranchers In 2005, the top 0.1 percent of earners in the U.S. made upwards of about $1.7 million, including capital gains. Forty-one percent of these roughly 140,000 families had a breadwinner who was an executive, a supervisor or a manager.

Rising

executive pay Executive pay began to grow around the same time as income equality in the U.S. and has increased about fourfold since 1970, while average wages for all workers have remained relatively flat. Defenders of executive pay levels say the higher salaries are justified as the size and profits of companies grow. TOTAL CHANGE SINCE 1970

Compared with other countries Although the gap between the top earners and everyone else has risen in several other nations, the growth has been more pronounced in the United States. SHARE OF NATION'S INCOME

EARNED BY THE TOP 0.1%

*Based on the salary, bonuses and stock options of the three highest-paid officers in the largest 50 firms. ** Calculated from Bureau of Economic Analysis data. NOTE: All figures have been adjusted for inflation.