In United States: The rich got richer, the poor got poorer.

[Edison Chen]

Wealthiest Households Accounted for 80% of Rise in Incomes In Recession’s Aftermath
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The rich got richer, the poor got poorer.

A recent article by Labor Department senior economist Aaron Cobet highlights the sharp disparity between the wealthiest and poorest Americans in the aftermath of the 2007-2009 recession.

“While average income has returned to pre-recession levels, income gains have been distributed unevenly,” Mr. Cobet said.

The economist mined Labor Department data to show that the top 20% of earners accounted for more than 80% of the rise in household income from 2008-2012. Income fell for the bottom 20%.

That had a direct impact on spending. The top households increased spending by about $2,300 from 2008-2012, notably on health care, transportation and education. The 20% of households with the lowest incomes cut spending by about $150.

“The decline in spending was due to lower expenditures on apparel—specifically women’s apparel,” Mr. Cobet said. Entertainment, housing, personal care, insurance, alcohol and reading also took a hit.

The International Monetary Fund has warned that rising income inequality is weighing on global growth. And President Barack Obama has made America’s income inequality a focal point of his second-term agenda.

Republicans have resisted one proposal to help workers with low incomes: raising the minimum wage. GOP lawmakers say such a step will lead to job losses and do little to spur growth.

Wealthiest Households Accounted for 80% of Rise in Incomes In Recession’s Aftermath - Real Time Economics - WSJ