As income inequality in the U.S. has grown more severe in recent decades, with wealthier households gaining and lower and middle income Americans falling further behind, a big part of the debate over how to restore more balance has focused on boosting wages.
New research digs into another aspect of earnings and wealth building: asset income from sources like dividend payments to shareholders, interest earned from deposits, bonds or other lending, and rent from investments in real estate or land. This type of income is substantial, accounting for about 20% of the nation’s personal earnings. But the report from the Economic Innovation Group suggests it is increasingly held in fewer places and by fewer hands.
