The top 1% of earners have seen their incomes increase by 179% since 1979, and the top 0.1% have seen their wages increase by 389%
When you read all those accounts of the top 1%, or even the top 5% or 10%, you might wonder about the amount of money it takes to fit into such categories. Now, data from the Economic Policy Institute says that you must have a six-figure income to make it to the list of the top earners in the country.
Annual Salary Of Highest Earners
The EPI data says that the yearly wages of the top 1% rose to USD 823,763 in 2020, 7.3% more than what they earned in 2019.
So what salary must you have to be in the top 0.1%?
A substantial USD 3,212,486 is over 10% more than that group made the year prior. Over the same period, wages for the lowest 90% increased just by 1.7%, with an average income of UD 40,085.
The top 1% of earners have seen their incomes increase by 179% since 1979, and the top 0.1% have seen their wages increase by 389%, according to EPI research. Pay for the lowest 90% category only increased by 28%. EPI got the figures from the recent Social Security Administration data.
Effects Of Financial Crisis
The wealthiest 0.1% and 1% of earners respectively saw their salaries decline the most during the 2007-2009 financial crisis. The richest 0.1% still needed to reach their 2007 earnings in 2020. Since 2007, salaries for the top 5% of earners have increased by 13.4%. The top 10% experienced a 16.5% growth.
The COVID-19 Effect
Despite the pandemic hammering the United States economy, the rich have continued to get richer. From March to December 2021, this 1% wealthiest Americans got richer by USD 4.5 trillion.
Another Federal Reserve says that till 2021, the country’s wealth was more controlled by the top 1% of individuals than the 60% of American middle households, who possessed a share of 26.8%.
Income Inequality
As noted by the EPI, “The bottom 90% made up 69.8% of all incomes in 1979 but only 60.2% in 2020. But from 7.3% in 1979 to 13.8% in 2020, the top 1% share of earnings doubled.”
The EPI also said that from 1.6% in 1979 to 5.4% in 2020, the share of earnings of this top 0.1% more than tripled.
Is The Wealthy Getting Wealthier?
The wages of the top 1% increased by 119.2% between 1979 and 2020, whereas the rate of rise for the top 0.1% was more than twice as high: 389.1%. The bottom 90% saw a growth of 28.2% around the same period. The upward wage distribution from the bottom 90% to the top 1.0% from 1979 to 2019 reached a significant level in 2020, producing historically high wage levels and shares of all wages for the top 1.0% and 0.1%.
How Much Salary Would I Need To Earn To Be In The Top 0.1%?
Roughly USD 3.21 million in a year. As of 2020, this is an all-time high, and 2021 is expected to break yet another record.
How Many People Are Billionaires?
The global count has declined by 87, according to Forbes’ annual list of the world’s wealthiest people published in 2022. And thousands of them have more money now than they did in 2021.
735 Americans are billionaires, more than any other nation. China is just a little behind at 607, which includes Hong Kong and Macao. Only eight African Americans are among the country’s billionaires. These include businesspeople Robert F Smith and David Steward, Oprah Winfrey, Kanye West, Rihanna, Michael Jordan, Jay-Z, and Tyler Perry.
The Conclusion
Since 1979, the wealthiest Americans saw their wealth increasing more quickly than the rest of the population. Despite a series of changes in the salary ranges in the last 42 years, the income gap between the richest and lowest incomes still remains at large.
As someone deeply versed in economic and social trends, particularly those related to income inequality, wealth distribution, and financial systems, I can provide a comprehensive breakdown of the concepts and data points mentioned in the article.
1. Income Growth Trends:
- The article highlights that since 1979, the top 1% of earners have witnessed a 179% increase in their incomes. In comparison, the top 0.1% have seen an even more substantial rise of 389%. Conversely, the lowest 90% experienced a much more modest increase of 28% during the same period. Such statistics underline a widening income gap over the years.
2. Top Earner Salaries:
- The Economic Policy Institute (EPI) data indicates that, as of 2020, a yearly wage of USD 823,763 places one in the top 1% of earners. To be in the more elite top 0.1%, an individual would need an income exceeding USD 3,212,486 annually.
3. Effects of Financial Crises:
- The 2007-2009 financial crisis impacted the top 0.1% and 1% of earners significantly, with their salaries declining notably. However, the subsequent recovery wasn't uniform, as the top earners still aimed to reach their pre-crisis earnings by 2020.
4. Impact of COVID-19:
- Despite the economic challenges posed by the COVID-19 pandemic, the wealthiest Americans continued to accumulate wealth. Between March and December 2021, the top 1% saw an increase in wealth by an astounding USD 4.5 trillion.
5. Wealth Distribution:
- Data from the Federal Reserve underscores the concentration of wealth among the top 1%. By 2021, this top echelon of earners held more of the nation's wealth than 60% of American middle households combined.
6. Income Inequality:
- The EPI notes a concerning trend of increasing income inequality. For instance, the share of total income held by the bottom 90% declined from 69.8% in 1979 to 60.2% in 2020. In contrast, the top 1% saw their share of earnings double during this period.
7. Global Billionaire Trends:
- According to Forbes, as of 2022, the global count of billionaires has decreased by 87. The U.S. leads with 735 billionaires, followed closely by China with 607. Notably, the article highlights only eight African Americans among the U.S. billionaires.
8. Conclusion on Wealth Trends:
- Over the past four decades, the article emphasizes that the wealthiest Americans have experienced a more rapid accumulation of wealth compared to the broader population. Despite shifts in income brackets and economic events, the income disparity between the affluent and the less affluent has persisted and even intensified.
In sum, the data and trends highlighted in the article echo broader global concerns about income inequality, wealth concentration, and the socio-economic implications of these disparities. Such trends often provoke discussions on policy interventions, tax reforms, and broader societal implications of concentrated wealth.
