As the chart above shows, according to Saez and Zucman's findings, the top 0.1 percent of U.S. households — 160,000 families, worth an average of $73 million — now holds 22 percent of America's wealth, for the first time since 1929. The real eye-opener, though, is the top 0.01 percent — 16,000 families, worth an average of $371 million, including both the Mark Zuckerbergs and Paris Hiltons of America — own 11.2 percent of total wealth, tying 1916 as the highest percentage on record.
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The super-wealthy hit (still-comfortable) bottom in 1978, the economists found, and have risen steadily since; the bottom 90 percent peaked and started their long decline in 1986. Differences in wealth generation is part of the equation — the income of the top 1 percent rose 3.4 percent a year from 1986 to 2012, versus 0.7 percent for the bottom 90 percent — but Saez and Zucman say the biggest cause of the declining middle class is rising debt.
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
