Question

How has the inequality of income changed in the

U.S. economy since the late 1970s?

Short answer

The income inequality has increased since 1970s.

Step-by-step solution

Step 1.  Income inequality 

Income inequality is difference in distribution of income among individuals within country.

Step 2.  Since the late 1970s 

In the 1970, the middle class households had a 62% share in the aggregate income of the nation; this rate fell to 42% in 2018. Similalry, the income share of lower-class households fell from 10% in 1970 to 9% in 2018.

Step 3. Inequality in income now

If we see current statistics, 20 percent of the population earns 51.9 percent of the U.S income. 23 percent of all income is earned by the top 5 percent and 3.1 percent of the nation's income is earned by 20 percent of the bottom.