Moneybox: The Economics of Occupy Wall Street

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Moneybox The Economics of Occupy Wall Street The protesters say the top 1 percent of Americans have gotten too rich. Are they right? By Annie Lowrey Posted Wednesday, Oct 05, 2011, at 09:32 PM ET It is not easy to say just what Occupy Wall Street wants; there is no concise list of specific demands. But the gist of the  quickly snowballing movement is clear. Wall Street has not accepted responsibility for its role in the financial crisis and ensuing recession. It has done more harm than good for average citizens and businesses. On top of all that, average Americans are "getting nothing while the other 1 percent is getting everything. We are the 99 percent." One thing is inarguably true: The 99 percent don't have 99 percent of anything, money-wise, in the United States. But just how bad is the skew toward the top 1 percent? Let's start with income—the money you make from things like wages, salary, interest payments, and collected rent. According to an analysis (XLS) of Internal Revenue Service data by the economists Thomas Piketty and Emmanuel Saez, the 99 percent account for 79 percent of income in 2008, with the top 1 percent taking the other 21 percent. "That's not that bad," you might say. "Of course, some people are going to be richer than others." Perhaps. But the 1 percent has been eating a bigger and bigger share of the pie over time. Back in the 1970s, the 99 percent were earning about 90 percent of income, for instance. The top 1 percent of households took a bigger share of overall income in 2007 than they did at any time since 1928. Moreover, Piketty and ... To continue reading, click here. Join the Fray: our reader discussion forum What did you think of this article? POST A MESSAGE | READ MESSAGES Also In Slate Left Behind Where Should I Start with Tömas Transtromer? Steve Jobs Baby-Sat My Kids	Advertisement
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