A look at income and wealth in America

Diverse forces in the U.S. economy have led to a tendency for increased concentration of income and wealth in the upper income brackets. Some mobility within classes helps to mitigate the problem, but sluggish growth of real incomes has heightened awareness of this trend. Even though the vast majority of Americans continue to identify themselves as "middle class," this slowed growth contributes to the concerns about the shrinking size of this group. Between 1975 and 1995 the highest quintile of households was the only one to experience a growing share of money income, with virtually all of the increase occurring within the top 5 percent. Education and training in our high-technology society are two key elements in improving income. Demographic forces may also change income and wealth dynamics in the future particularly as the population ages and the ratio of workers to the elderly retired affects the supply demand forces in the labor markets.