Monday, January 13, 2003

NYTimes -- Who Are the Truly Rich?

"In the 80's, it was not so much the top moving way ahead," said Jared Bernstein, an economist at the Economic Policy Institute, a liberal research group in Washington. "It was the bottom getting smashed."

In the 1990's, by contrast, inequality kept growing because the wealthy did fabulously well. Despite the decade's prosperity and the raises given to most workers, the top 20 percent of earners were the only group to increase its share of the nation's income.

The storm of criticism of Mr. Bush's plan from Democrats last week — that it amounted to an attack on the middle class — showed they believe they will gain by opposing the wealthy. The Republicans believe that taking less from the rich will help stimulate the overall economy, as well as shore up a powerful constituency.

The winner of this struggle will help determine whether the next 20 years will be as good for the rich as the last 20 were.

Or as bad for the bottom rungs?

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