Income and wealth inequalities are well-known problems in our economy. Income inequality in the US is extreme. We’re the most unequal of nations among all developed nations. Because of this inequality, one in five U.S. families, in 2021, was forced to live on an income that averaged just $14,859 per year, an income that is $56,020 below the average family income of $70.879 in 2021.
It’s this persistent low income (only 2.9 percent of all earned income goes to the bottom 20 percent) that generates our high level of wealth inequality. The bottom half of income earners in 2022 controlled 3.3 percent of the net wealth in the US, this compares to the 30.6 percent of net wealth held by the top 1 percent of income earners.