Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

US income distribution winners and losers

29.02.2012
Rich households found to be the real beneficiaries of economic prosperity
People all over the world have spent almost six months in front of universities, public parks, banks, and even Wall Street to publicly protest their dissatisfaction with economic inequality. But how much disparity really exists between the rich and poor in the United States? According to a new study, it might be more than you would think.

A recent study published in the Review of Radical Political Economics (published by SAGE), analyzed surveys of US households from the late 1990's and early 2000's. The author looked at differences among quintiles (or fifths of the U.S. population according to gross income) and found that when the U.S. economy prospers, there is an uphill flow of income to households in the upper quintiles while the majority of households in middle and lower income quintiles do not see an increase in income at all. This of course affects US households when the economy slows down.

According to the author, the data suggests that "those in the bottom…appear to be stuck there, and in some cases even sliding further into the depths of poverty, further negating the optimistic outcomes postulated by conventional economic thinking."

The author analyzed data from surveys of over 60,000 U.S. households that were taken periodically from 1996 to 2003. He notes that throughout these years, U.S. households had to adjust to some substantial changes in the economy from times of surplus and low unemployment rates to times when the economy slowed down substantially. Interestingly, when the economy of the U.S. prospered in the 1990s, only the incomes of richer households appeared to reflect this growth.
"It can be argued that households in the upper portion of the income distribution are better positioned, or even favored, to reap the benefits from growth, further widening the income gap between rich and poor," wrote the author.

Conversely, the author wrote that even in times of economic prosperity, poorer classes have limited access to resources that would improve their position. For example, while technological advances spur economic growth, they do not benefit all households equally.

"The data imply that the U.S. economy is not one of mobility and opportunity," wrote the author. "Richer households are getting richer, the poorer households are staying poor, and those middle-income households continue to move about chasing the elusive American dream."

The article entitled "Who are the Winners and the Losers? Transitions in the U.S. Household Income Distribution" from the Review of Radical Political Economics is available free for a limited time at: http://rrp.sagepub.com/content/43/4/467.full.pdf+html
Review of Radical Political Economics (RRPE), peer-reviewed and published quarterly, has been a leading outlet for innovative research in non-orthodox economics for more than forty years. RRPE promotes critical inquiry into all areas of economic, social, and political reality with articles covering all areas of political economy including, but not confined to, Marxian economics, post-Keynesian economics, Sraffian economics, feminist economics, and radical institutional economics.

SAGE is a leading international publisher of journals, books, and electronic media for academic, educational, and professional markets. Since 1965, SAGE has helped inform and educate a global community of scholars, practitioners, researchers, and students spanning a wide range of subject areas including business, humanities, social sciences, and science, technology, and medicine. An independent company, SAGE has principal offices in Los Angeles, London, New Delhi, Singapore and Washington DC. http://www.sagepublications.com

Ashley Loar | EurekAlert!
Further information:
http://www.sagepub.com

More articles from Business and Finance:

nachricht How Strong Brands Translate into Money
15.11.2016 | Kühne Logistics University - Wissenschaftliche Hochschule für Logistik und Unternehmensführung

nachricht Demographic change depresses tax revenues
04.11.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT

All articles from Business and Finance >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.

While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...

Im Focus: Studying fundamental particles in materials

Laser-driving of semimetals allows creating novel quasiparticle states within condensed matter systems and switching between different states on ultrafast time scales

Studying properties of fundamental particles in condensed matter systems is a promising approach to quantum field theory. Quasiparticles offer the opportunity...

Im Focus: Designing Architecture with Solar Building Envelopes

Among the general public, solar thermal energy is currently associated with dark blue, rectangular collectors on building roofs. Technologies are needed for aesthetically high quality architecture which offer the architect more room for manoeuvre when it comes to low- and plus-energy buildings. With the “ArKol” project, researchers at Fraunhofer ISE together with partners are currently developing two façade collectors for solar thermal energy generation, which permit a high degree of design flexibility: a strip collector for opaque façade sections and a solar thermal blind for transparent sections. The current state of the two developments will be presented at the BAU 2017 trade fair.

As part of the “ArKol – development of architecturally highly integrated façade collectors with heat pipes” project, Fraunhofer ISE together with its partners...

Im Focus: How to inflate a hardened concrete shell with a weight of 80 t

At TU Wien, an alternative for resource intensive formwork for the construction of concrete domes was developed. It is now used in a test dome for the Austrian Federal Railways Infrastructure (ÖBB Infrastruktur).

Concrete shells are efficient structures, but not very resource efficient. The formwork for the construction of concrete domes alone requires a high amount of...

Im Focus: Bacterial Pac Man molecule snaps at sugar

Many pathogens use certain sugar compounds from their host to help conceal themselves against the immune system. Scientists at the University of Bonn have now, in cooperation with researchers at the University of York in the United Kingdom, analyzed the dynamics of a bacterial molecule that is involved in this process. They demonstrate that the protein grabs onto the sugar molecule with a Pac Man-like chewing motion and holds it until it can be used. Their results could help design therapeutics that could make the protein poorer at grabbing and holding and hence compromise the pathogen in the host. The study has now been published in “Biophysical Journal”.

The cells of the mouth, nose and intestinal mucosa produce large quantities of a chemical called sialic acid. Many bacteria possess a special transport system...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

12V, 48V, high-voltage – trends in E/E automotive architecture

10.01.2017 | Event News

2nd Conference on Non-Textual Information on 10 and 11 May 2017 in Hannover

09.01.2017 | Event News

Nothing will happen without batteries making it happen!

05.01.2017 | Event News

 
Latest News

Water - as the underlying driver of the Earth’s carbon cycle

17.01.2017 | Earth Sciences

Interfacial Superconductivity: Magnetic and superconducting order revealed simultaneously

17.01.2017 | Materials Sciences

Smart homes will “LISTEN” to your voice

17.01.2017 | Architecture and Construction

VideoLinks
B2B-VideoLinks
More VideoLinks >>>