Tap to Call - (877) 250-8242

The Vicious Cycle of Income Inequality

By

Share this article

SHARE

 

American income inequality has returned to the 1920s levels. With more and more Americans filing bankruptcy to get out of debt, many are wondering if the cycle will continue and usher in another Great Depression.

income inequality is a vicious cycle

Embed the infographic above with the HTML below

*Please use the above code unaltered or include a citation of this site as the original source.




1920's

  • The "Roaring" 20s brings high income to the wealthiest of Americans.
  • Middle and low-income Americans do not see a substantial income increase.

1930's

  • The Great Depression causes economic collapse.
  • Wealthy Americans see income decrease.
  • Middle and low-income Americans see income decrease.

Late 1940's - Early 1970's

  • A period of growth begins.
  • Wealthy Americans see steady income growth.
  • Middle-class and low-income Americans see steady income growth.
  • Rate of growth is approximately the same, keeping a narrow gap.

Early 1970's - 2000's

  • Income gap begins widening.
  • Wealthy Americans see steady income growth.
  • In 2005, the top 1% of Americans earned 21.2% of all income.
  • In 2004, the top 1% earned 19%.
  • In 2000, the top 1% earned 20.8%.
In 2005, the bottom 50% of Americans earned 12.8% of all income.
  • In 2004, the bottom 50% earned 13.4%.
  • In 2000, the bottom 50% earned 13%.

Middle-class and low-income Americans see sharp decline in income growth.

The Economic recession begins in 2008.

Present

  • Wealthiest of Americas are receiving a larger pre-tax share of the national income.
  • Though they saw an income decrease in the 2008 recession, their income has bounced back.
  • The top 1% of Americans account for 93% of the economic gains in 2010.
  • Income for middle-class and low-income Americans has continued to decrease since the recession.

Income inequality levels are now back to the 1920's levels.

  • As income inequality grows, the economy weakens.
  • Conversely, as the economy weakens, income inequality increases.

This infographic was brought to you by Total Bankruptcy.


Back to Newspaper Home


Tap to Call - (877) 250-8242

PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 400, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.

FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.

If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.

By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.