The Census Bureau released data on income inequality recently and Mother Jones put together some charts showing the results of the research (linking one here but more good ones in the article). It’s very clear how this is continuing to shrink the middle class and, if not for the social safety nets we have had in place since the 1960s and before, the poverty rate would be tremendously higher.
The Atlantic also added a chart to this data that should be noted and I’ll include here.What should be pointed out in this chart is that the S&P was doing just fine in the ’50s, ’60s, and early ’70s when inequality was nowhere near the levels it is at today. This is important since the typical argument from the right as to why we can’t have higher taxes on the wealthy that would lessen income inequality is because of its crushing impact on investment which, in turn, would cut economic growth. Clearly, not true.