Exploring the relationship between income inequality and rates of innovation

Google bus protest, San Francisco (berkeley.edu)

Google bus protest, San Francisco (berkeley.edu) Research has consistently shown that income inequality in the United States has risen steadily over the past 30 years, and that the trend accelerated since the Great Recession. A 2013 study from U.C. Berkeley’s Edward Saez found that top earners were capturing an ever-increasing portion of income gains — including 95% of those during the 2009-2012 recovery. The reasons are complex, but include the spread of low-wage jobs , the decline of trade unions , an increasingly polarized job market and a vertiginous rise in CEO compensation .

Most economists agree that similar trends […]