Top Heavy: A Study of the Increasing Inequality of Wealth in America

by Edward N. Wolff

We Americans have always flattered ourselves that we have more of two good things than almost anyone democracy and opportunity. To be sure, neither is simple; American ethos is not static, nor is it without contradictions. We reinvent ourselves through immigration; our democracy suffers from low voter participation; our economy often seems to be in relative decline; our cities sometimes are viewed from the suburbs as if they were foreign nations. Still, in the past, the democratic foundation has held while economic opportunity has provided the glue that bound together American's oddly shaped parts. However, there is evidence that the "glue" that has provided economic stability and growth in the United States might be faltering.Over the last several years, many studies have established that the working population of the United Sates--especially men with less than a college education--not only are doing more poorly than their parents, but their real wages are declining. In the 1990s, American families in every income category enjoyed income growth--and the poorest families had the highest rate of all. However, the average was high because it was a reflection of high income growth for the top 20 percent of families, and a significant fall in income for the poorest 20 percent. As a result, nearly half the families in the country today have lower real income than they did in 1973.In the pages that follow, Edward Wolff, adds data and provides analysis concerning wealth to our current knowledge about trends in income distribution. While wealth inequality always has been greater than income inequality, Wolff reports remarkable increases in wealth inequality in recent years. Startlingly, Wolff makes the assessment that the United States has gone from a position of less wealth inequality among its citizens than in Europe to greater wealth inequality than is found in those class ridden societies.From the data analysis, Wolff then moves to make a significantly bold set of policy suggestions to help curb economic inequality and stimulate real economic growth. He suggests that we should ultimately ignore the growing inequality and exclude from consideration tax policy options that attempt to ameliorate the situation. But surely these subjects are worth discussing, if only to understand the forces that challenge democracy and economic opportunity. With a remarkably large segment of the population losing ground in wealth and income, the inevitably greater insecurity this group faces must be a root cause of the anger that is shaking the democratic system.

Genres: Economics, Nonfiction

93 pages, Paperback

First published May 1, 1995

Reviews

[Public Scott · Rating 2 out of 5]

Pretty good, though the numbers are wildly out of date now, this extended look at wealth inequality (as opposed to income inequality which gets much more attention) is basically a research paper in paperback form. However, it goes by pretty quickly at a breezy 150 pages or so. I was especially interested in Wolff's description of a possible wealth tax and his comparisons to how such a tax is done in other countries. Another piece of the inequality puzzle that is worth knowing about...

[Ryan · Rating 4 out of 5]

This should be classified as fiction. Inequality does not exist and if it did, using the tax code to reduce would be impossible to legislate.

I'm taking suggestions for a NON-FICTION book that can change my perspective on mobility and income and wealth inequality.