The new liberal bible is by a French economist (Thomas Pinetty) “proving” that capitalism causes income & wealth inequality.
So that you don’t inadvertently land in the evil 1%, MarketPlace.com recapped some research on what it takes to make it to the top 1%
The conclusion: The top-earners club isn’t quite the bastioned, unreachable world it’s been painted out to be … a household income just north of $300K gains entry … and there is a “strong sense of fluidity in terms of folks entering the top income percentiles,”
Note the big spike during the dot-com bubble …. garage-tech entrepreneurs flooded the top 1%, pushing the entry level to almost $450,000 … showing that all it takes is an idea and an IPO to make the top 1%.
And, these entrepreneurs also demonstrated the fluidity of the top 1% …. most of them aren’t there now.
Also, note that the 1% entry level in 1993 – in nominal terms (i.e. not adjusted for inflation) — was higher than it was in 2010 – also in nominal terms.
Here’s what I found most interesting …
On an inflation adjusted basis, the 1% entry income has stayed pretty flat for the past 35 years.
Wouldn’t you have thought that evil capitalism would have bumped that number up … by a lot?