Over the past several years, the United States has enjoyed the most favorable macroeconomic conditions in more than three decades—to some, the definition of “as good as it gets.” Unemployment has been low, growth has been above expectations of what the U.S. economy could sustain over such a long period, and inflation has declined to a very low rate of growth. But one feature of today’s economy stands in marked contrast with the earlier years. In the 1960s, the incomes of all those involved in the economy were much more narrowly spread than is the case today. Whether one examines the wages and salaries of workers or the total incomes of families and households, income inequality, that is, the difference in income between those at the upper and lower ends of the income distribution, has increased markedly. To some, perhaps, the definition of an economic problem.

Complete Report (1.5MB)

Feature Essay:
Addressing the Challenge of Growing Earnings Inequality (550K)
by Cathy E. Minehan and Robert K. Triest

Financial Statements (83K)