Black Americas 2011 Economic Challenge:

citizen |

According to CBO, the nations top one percent of household income more than tripled during these years, while middle class households either slipped into poverty or barely held on to their standard of living.
According to CBO, the nations top one percent of household income more than tripled during these years, while middle class households either slipped into poverty or barely held on to their standard of living.

Overcoming income inequalities through better consumer choicesBy Charlene CrowellNNPA Columnist

The agency mandated to provide Congress with impartial, non-partisan and timely analyses seldom makes headline news. But this week when the Congressional Budget Office (CBO) released findings on its analysis of the nations income inequalities from a 30-year review (1979-2007), media coverage exploded.

After assessing the net income shares of people in 525 cities and towns, the agencys top-line finding was reminiscent of lines from a Broadway production, Theres no shame in being poor but its no great honor either.

According to CBO, the nations top one percent of household income more than tripled during these years, while middle class households either slipped into poverty or barely held on to their standard of living. Middle class income earners representing 60 percent of the population accounted for only 40 percent of after-tax household income. And among Americas lowest earning workers about 20 percent of the population, the growth in average real after-tax household income was only 18 percent.

In part the report advised, The rapid growth in average real household income for the one percent of the population with the highest income was a major factor contributing to the growing inequality in the distribution of household income between 1979 and 2007. Shifts in government transfers and federal taxes also contributed to the increase in inequality.

A plain English translation of this finding seems to be that the 30-year span of trickle-down economics at work has not brought a drop of prosperity to 99 percent of the nation. No wonder the nation has seen a groundswell of demonstrators referring to themselves as the 99ers.

Charlene Crowell is a communications manager with the Center for Responsible Lending. She can be reached at: Charlene.crowell@responsiblelending.org

Latest Stories

Latest Podcast

Quandra-Urban Market Exchange