Shaping the Future of NYC

This article talks about some inequalities related to the income gap.

“From 1993 to 2010, the incomes of the richest 1 percent of Americans grew 58 percent while the rest had a 6.4 percent bump. There is little reason to think the trend will go into reverse any time soon, given globalization and technological change, which have weighed heavily on the wages of less educated workers who compete against machines and cheap foreign labor while increasing the returns of top executives and financiers.

The income gap narrowed briefly during the Great Recession, as plummeting stock prices shrunk the portfolios of the rich. But in 2010, the first year of recovery, the top 1 percent of Americans captured 93 percent of the income gains.”

“A big income gap is likely to open up other social breaches that make it tougher for those lower down the rungs to get ahead. And that is exactly what appears to be happening in the United States, where a narrow elite is peeling off from the rest of society by a chasm of wealth, power and experience.”

“One doesn’t have to believe in equality to be concerned about these trends. Once inequality becomes very acute, it breeds resentment and political instability, eroding the legitimacy of democratic institutions. It can produce political polarization and gridlock, splitting the political system between haves and have-nots, making it more difficult for governments to address imbalances and respond to brewing crises. That too can undermine economic growth, let alone democracy.”