4 ms·
The graph is a bit hard to read since it's labeled poorly. The X-axis is the year. The Y-axis is the percentage of income relative to 1979, after-tax. They do n
by dgallagher 15y ago
The graph is a bit hard to read since it's labeled poorly. The X-axis is the year. The Y-axis is the percentage of income relative to 1979, after-tax. They do not mention if these numbers were adjusted for inflation, but the report linked to on the page says the numbers are adjusted for inflation:
Income is adjusted for inflation using the Bureau of Labor Statistics’ research series of the consumer price index for all urban consumers (CPI-U-RS). -http://cbo.gov/ftpdocs/124xx/doc12485/10-25-HouseholdIncome.pdf http://cbo.gov/ftpdocs/124xx/doc12485/10-25-HouseholdIncome....
That report is much more detailed than the Economist's summary.
So, in 2007 the top 1% made ~375% of what they did in 1979 (~275% gain). In 2007 the bottom 20% made ~120% of what they did in 1979 (~20% gain).
- msbarnett 15y ago> They do not mention if these numbers were adjusted for inflation... The graph is labelled "US real average after-tax income" (emphasis mine). Real income is, by definition, income that has been adjusted for inflation.
- dgallagher 15y agoAh, I missed that. Nice catch! :)