Income Inequality Developments in the Great Recession

Author
Tomas Hellebrandt
Content Type
Policy Brief
Institution
Peterson Institute for International Economics
Abstract
The Great Recession, which cost tens of millions of jobs, a collapse of asset values around the world, and threatened the global financial system, has generated renewed concern over the long-standing issue of the fairness of the distribution of wealth and income in many societies. Economic inequality has increased in the United States and many other advanced economies over the past 20 to 30 years. This trend generated less worry in the boom years, when unemployment rates were low and cheap credit enabled consumers to borrow and maintain higher standards of living, masking the impact of growing income disparity on consumption patterns and perceptions of well-being.
Topic
Debt, Economics, International Trade and Finance, Poverty, Social Stratification, Financial Crisis
Political Geography
United States, United Kingdom, Germany, Spain, Italy, Ireland