The Micro Economic Growth Rate of the United States

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Average income has increased 60 % since 19 80, that's equivalent to an annual real growth rate one point four% per year. For the vast, vast majority of the population, the the growth that they've experienced has been much less than one point four%. It's only for the top 12 % that income has grown at above one point four%; and among that group, you see high gross rates of three, four, five percent.

Gabriel Zucman of the University of California, Berkeley talks with EconTalk host Russ Roberts about his research on inequality and the distribution of income in the United States over the last 35 years. Zucman finds that there has been no change in income for the bottom half of the income distribution over this time period with large gains going to the top 1%. The conversation explores the robustness of this result to various assumptions and possible explanations for the findings.