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Income Inequality Is A Policy Of Choice- By: Ross Eisenbrey

In a speech at the Center for American Progress, the Chairman of the Council of Economic Advisors, Alan Krueger, laid out a compelling argument that rising inequality is a danger not just to the middle class, but to the recovery from the Great Recession and to the long-term growth of the U.S. economy. Krueger showed, with the help of some excellent charts, that the polarization in income in the U.S. has already shrunk the middle class dramatically and that the median household?s income is lower today than it was 10 years ago. Data from around the world support a connection between increased equality and increased economic growth and between income equality and economic mobility.

EPI has been sounding the alarm about the rise in inequality for many years, and a useful tool on our website shows the history of how national income has been shared between the bottom 90 percent and the top 10 percent, going back to 1917.

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