Sometime around 50 years ago, something extreme started to change in the way rich people make and earn money in America. Actually, it was so extreme that we're still reeling from it now.
So what’s going on? Plenty. The very, VERY short story is this: Around 50 years ago, the super-rich started to gain the majority of their wealth less from salaries and more from the stock market ... all while having to follow fewer and fewer rules on their investments and profits.
See that income inequality jump in the '90s-'00s? Well, between 1992 and 2007, the average salary of the richest/wealthiest/most well-to-doiest 400 American people doubled, but the average capital gains (aka investments) haul increased 13x. Yes: thirteenfold increase. Lucky 13 (for the richest 400 people)! That’s 2x the salary and 13x the investment money. Sounds nice! Can I get that?
But here’s what’s crazy: As you can see from the chart above, there’s income inequality among the super-rich! The 99% of the super-rich are leagues below the 1% ... of the 1%. It’s like income inequality INCEPTION. Whoa.