In 2010, average real income per family grew by 2.3% (Table 1) but thegains were very uneven. Top 1% incomes grew by 11.6% while bottom 99%incomes grew only by 0.2%. Hence, the top 1% captured 93% of the incomegains in the first year of recovery. Such an uneven recovery can help explainthe recent public demonstrations against inequality. It is likely that this unevenrecovery has continued in 2011 as the stock market has continued to recover.National Accounts statistics show that corporate profits and dividendsdistributed have grown strongly in 2011 while wage and salary accruals haveonly grown only modestly. Unemployment and non-employment haveremained high in 2011.This suggests that the Great Recession will only depress top incomeshares temporarily and will not undo any of the dramatic increase in topincome shares that has taken place since the 1970s.
"I'm not Zen at all, and when I'm freaking out about the situation, where I'm stuck like a rat in a trap on a highway with no way to get out, it's very hard," Schiff, director of marketing for broker-dealer Euro Pacific Capital Inc., said in an interview.
Schiff, 46, is facing another kind of jam this year: Paid a lower bonus, he said the $350,000 he earns, enough to put him in the country's top 1 percent by income, doesn't cover his family's private-school tuition, a Kent, Connecticut, summer rental and the upgrade they would like from their 1,200-square- foot Brooklyn duplex.Hang in there buddy. It's getting better all the time. For you.
"I feel stuck," Schiff said. "The New York that I wanted to have is still just beyond my reach."
The smaller bonus checks that hit accounts across the financial-services industry this month are making it difficult to maintain the lifestyles that Wall Street workers expect, according to interviews with bankers and their accountants, therapists, advisers and headhunters.
"People who don't have money don't understand the stress," said Alan Dlugash, a partner at accounting firm Marks Paneth & Shron LLP in New York who specializes in financial planning for the wealthy. "Could you imagine what it's like to say I got three kids in private school, I have to think about pulling them out? How do you do that?"