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24-Sep-2017 02:35

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Most liberals and leftists concerned with inequality have argued with this not by disputing the underlying numbers but by pointing out that it’s a rather odd conservative defense of the way the economy works.

“So the argument (of the right) has to be: cash market income of the bottom 99 percent of adults has stagnated but the bottom 99 percent get much more expensive private and government provided health care benefits, some more government transfers, and they have fewer kids,” Saez, who pioneered the use of tax data to study inequality, told the New York Times’s Thomas Edsall in 2012.

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Produced by Berkeley economist Emmanuel Saez and his frequent collaborators Thomas Piketty (EHESS), and Gabriel Zucman (Berkeley), and using a mix of tax and survey data, it shows compellingly that income gains in recent decades have gone overwhelmingly to the ultrarich, not the middle class: taking all the economic gains.

With the results, called “distributional national accounts,” researchers can see exactly where economic growth is going, and how much each group is seeing its income rise relative to the overall economy.