Economist Emmanual Saez found that the average real income of the top 10% of US households jumped to more than 50% of total US income during 2012. The highest percentage on record - higher even than the 2007 and 1929 peaks in stocks.
According to French economist Thomas Piketty, the level of US inequality is "probably higher than in any other society at any time in the past, anywhere in the world".
If this trends continues Piketty predicts that the "consequences are potentially terrifying".
To solve the problem he advises a global 'tax the rich' policy. But the next leg of the bear market will correct the imbalance more than any tax could.
The calls for taxing the rich as the Great Depression got underway resulted in taxes of up to 99% for the wealthiest income earners. Ironically that occurred just as their wealth and income began plummeting along with asset prices.
