U.S. Income Inequality Hits New High

Latin America and Asia are not the only regions in the world that are suffering from income disparities.  Data from the IRS in 2005 indicates that the U.S. income inequality has hit a new high since World War II and possibly since the Great Depression.  The data shows that the wealthiest 1% of Americans now receive 21.2% of all income, up from 19% in 2004 and 20.8% in 2000.  The bottom 50% of Americans earned 12.8% of all income, down from 13.4% in 2004  .  According to an article in the Wall Street Journal,

Scholars attribute rising inequality to several factors, including technological change that favors those with more skills, and globalization and advances in communications that enlarge the rewards available to "superstar" performers whether in business, sports or entertainment.

In response to this new data, forecasters are calling for more technical and skill-based education to insure that America’s middle class will be able to compete in the shifting economic era.