What accounts for recent increases in income inequality?
Issues and Background Income inequality in the United States has risen over the past two decades. Its very persistence means that this trend will be difficult to change. Even recognizing the reversal when it does occur will be difficult enough, because statistical analysis cannot easily distinguish a decisive turnaround in inequality from a relatively brief pause in its rise. Because of this uncertainty, continued vigilance is required to find ways to help alleviate inequality, particularly to the extent that it can reduce hardship for those at the bottom of the economic ladder. ~ Economic Report of the President 1997 During the mid- to late-1990s, the United States enjoyed a strong economy with low levels of inflation and unemployment. The strong economy during this period, however, did not result in a steady rise in income for all Americans. In fact, for the last twenty-five years, the gap in income between rich and poor has increased. What accounts for the recent increases in income
