Rise Of The Rich

The credit crisis has forged an even larger gap between the rich and poor, though it might not last for long. The richest 10% of Americans made at least $138,000 each this year, according to Census data released last week. That’s a record-high 11.4 times the average income for the opposite end of the spectrum: the poverty line around $12,000. Pre-crisis multiples were closer to 11.2.

The middle class is getting credit crunched too. The median household income has fallen $1,860 over the last year -- wiping out a decade of slow gains -- to $50,303.

But if history is any guide, this trend may be near its peak. At present, about a quarter of America’s total income is earned by 1% of its population (amazing, eh?). That level has only been attained once in U.S. history -- ironically, 1928, right around the start of the last economic depression. What followed then was a 50-year trend in the other direction.