HOUSE_OVERSIGHT_025767.jpg
1.48 MB
Extraction Summary
2
People
4
Organizations
1
Locations
2
Events
1
Relationships
3
Quotes
Document Information
Type:
Economic research report (standard & poor's)
File Size:
1.48 MB
Summary
This document is page 5 of a Standard & Poor's report dated August 5, 2014, titled 'Economic Research: How Increasing Income Inequality Is Dampening U.S. Economic Growth.' It analyzes income inequality trends using data from the CBO and Census Bureau, citing economists Piketty and Saez to compare current inequality levels to those of 1928. While the content is generic economic research, the Bates stamp 'HOUSE_OVERSIGHT_025767' indicates this document was likely part of a discovery production to the House Oversight Committee, potentially related to investigations into financial institutions (like Deutsche Bank or JPMorgan) and their client relationships, including Jeffrey Epstein.
People (2)
| Name | Role | Context |
|---|---|---|
| Thomas Piketty | Economist |
Cited in the report for research on income concentration using U.S. tax returns.
|
| Emmanuel Saez | Economist |
Cited in the report for research on income concentration and observations on inequality levels resembling 1928.
|
Organizations (4)
| Name | Type | Context |
|---|---|---|
| Standard & Poor's |
Author of the research report.
|
|
| Congressional Budget Office (CBO) |
Source of data regarding household income growth and distribution.
|
|
| Census Bureau |
Cited for estimates on real mean household income increases.
|
|
| House Oversight Committee |
Implied by the Bates stamp 'HOUSE_OVERSIGHT_025767', indicating this document was part of a production to Congress.
|
Locations (1)
| Location | Context |
|---|---|
|
Subject of the economic research.
|
Relationships (1)
Cited together as economists finding income concentration trends.
Key Quotes (3)
"after-tax average income soared 15.1% for the top 1% from 2009 to 2010--but grew by less than 1% for the bottom 90% over the same time period"Source
HOUSE_OVERSIGHT_025767.jpg
Quote #1
"Saez later observed that U.S. income inequality has now reached levels not seen since 1928"Source
HOUSE_OVERSIGHT_025767.jpg
Quote #2
"a similar pattern was in evidence--a boom in the financial sector, over-leveraged lower-income households, a massive, systemic financial crash"Source
HOUSE_OVERSIGHT_025767.jpg
Quote #3
Full Extracted Text
Complete text extracted from the document (2,051 characters)
Economic Research: How Increasing Income Inequality Is Dampening U.S. Economic Growth, And Possible Ways
To Change The Tide
To Change The Tide
Chart 1
The Distribution Of Household Income Has Become More Concentrated Over
Time
Time
— Market income — Before-tax income ----- After-tax income
(Gini coefficient)
0.60
0.55
0.50
0.45
0.40
0.35
0.30
1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
0.60
0.55
0.50
0.45
0.40
0.35
0.30
1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009
Source: Congressional Budget Office. Note: See Glossary of Relevant Terms for definition
of Gini coefficient.
of Gini coefficient.
© Standard & Poor's 2014.
Although a 2011 CBO report demonstrated that real net average U.S. household income grew 62% from 1979-2007,
household income growth was much more rapid at the higher end of the income scale than at the middle and lower
end. Revisiting the issue in 2013, the CBO showed that after-tax average income soared 15.1% for the top 1% from
2009 to 2010--but grew by less than 1% for the bottom 90% over the same time period, and fell for many income
groups (5). Additionally, although the Census Bureau estimates that real mean household income increased 0.2% in
2011 and 2012, it declined for all groups other than those in the top fifth of earners (6).
household income growth was much more rapid at the higher end of the income scale than at the middle and lower
end. Revisiting the issue in 2013, the CBO showed that after-tax average income soared 15.1% for the top 1% from
2009 to 2010--but grew by less than 1% for the bottom 90% over the same time period, and fell for many income
groups (5). Additionally, although the Census Bureau estimates that real mean household income increased 0.2% in
2011 and 2012, it declined for all groups other than those in the top fifth of earners (6).
This concentration of household income follows a long period in which income concentration remained relatively flat.
Using U.S. tax returns, economists Thomas Piketty and Emmanuel Saez found that income concentration dropped
dramatically following both World Wars and was roughly unchanged for the next few decades (7). It started climbing
again in 1975, reaching pre-World War I levels by 2000--and Saez later observed that U.S. income inequality has now
reached levels not seen since 1928 (8). In both cases, a similar pattern was in evidence--a boom in the financial sector,
over-leveraged lower-income households, a massive, systemic financial crash--and the two worst economic slumps in
U.S. history, the Great Depression and Great Recession, followed.
Using U.S. tax returns, economists Thomas Piketty and Emmanuel Saez found that income concentration dropped
dramatically following both World Wars and was roughly unchanged for the next few decades (7). It started climbing
again in 1975, reaching pre-World War I levels by 2000--and Saez later observed that U.S. income inequality has now
reached levels not seen since 1928 (8). In both cases, a similar pattern was in evidence--a boom in the financial sector,
over-leveraged lower-income households, a massive, systemic financial crash--and the two worst economic slumps in
U.S. history, the Great Depression and Great Recession, followed.
WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 5, 2014 5
1351366 | 302136118
1351366 | 302136118
HOUSE_OVERSIGHT_025767
Discussion 0
No comments yet
Be the first to share your thoughts on this epstein document