Page 222 - Morgan Housel - The Psychology of Money_ Timeless Lessons on Wealth, Greed, and Happiness-Harriman House Limited (2020)
P. 222
You’ve probably heard these numbers but they’re worth rehashing. The
Atlantic writes:
COBACOBA
Between 1993 and 2012, the top 1 percent saw their incomes grow 86.1
percent, while the bottom 99 percent saw just 6.6 percent growth.
Joseph Stiglitz in 2011:
While the top 1 percent have seen their incomes rise 18 percent over the past
decade, those in the middle have actually seen their incomes fall. For men
with only high-school degrees, the decline has been precipitous—12 percent
in the last quarter-century alone.
It was nearly the opposite of the flattening that occurred after the war.
Why this happened is one of the nastiest debates in economics, topped only
by the debate over what we should do about it. Lucky for the purpose of this
discussion, neither matters.
All that matters is that sharp inequality became a force over the last 35 years,
and it happened during a period where, culturally, Americans held onto two
ideas rooted in the post-WW2 economy: That you should live a lifestyle
similar to most other Americans, and that taking on debt to finance that
lifestyle is acceptable.
8. The big stretch.
