The gap between the richest and poorest Americans widened even as the U.S. economic recovery gained traction in the years after the recession, the Federal Reserve said.
Average, or mean, pretax income for the wealthiest 10% of U.S. families rose 10% in 2013 from 2010, but families in the bottom 40% saw their average inflation-adjusted income decline over that period, according to the Fed’s Survey of Consumer Finances, which is conducted every three years.
The report showed little change in average take-home pay for middle- and upper-middle-class families, who “failed to recover the losses experienced between 2007 and 2010,” it said.
Overall, average income rose 4% from the 2010 survey while median””the midpoint with half higher and half lower””income fell 5%, “consistent with increasing income concentration during this period,” the report said. Median income fell for every income bracket except the top 10%.