In her December 1, 2014 article, Laura Tyson, the form chair of the U.S. President's Council of Economic Advisers, explains "The Rising Costs of U.S. Income Inequality." BERKELEY, Calif. - During the last several decades, income inequality in the United States has increased significantly -- and the trend shows no sign of reversing. The last time inequality was as high as it is now was just before the Great Depression. Such a high level of inequality is not only incompatible with widely held norms of social justice and equality of opportunity; it poses a serious threat to America's economy and democracy. Underlying the country's soaring inequality is income stagnation for the majority of Americans. With an expanding share of the gains from economic growth flowing to a tiny fraction of high-income U.S. households, average family income for the bottom 90 percent has been flat since 1980. According to a recent report by the Council of Economic Advisers, if the share o...
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