YUP, TRICKLE-DOWN ECONOMICS DOESN'T WORK

As we head into another recession, we learn that the top 1% has been doing great, at least over the years 2003-2005. IF "supply-side" economics were correct, we should be in the middle of a boom by now.

Report Says That the Rich Are Getting Richer Faster, Much Faster
By DAVID CAY JOHNSTON
Published: December 15, 2007

The total income of the top 1.1 million households was $1.8 trillion, or 18.1 percent of the total income of all Americans, up from 14.3 percent of all income in 2003. The total 2005 income of the three million individual Americans at the top was roughly equal to that of the bottom 166 million Americans, analysis of the report showed.

Earlier reports, based on tax returns, showed that in 2005 the top 10 percent, top 1 percent and fractions of the top 1 percent enjoyed their greatest share of income since 1928 and 1929.

On average, incomes for the top 1 percent of households rose by $465,700 each, or 42.6 percent after adjusting for inflation. The incomes of the poorest fifth rose by $200, or 1.3 percent, and the middle fifth increased by $2,400 or 4.3 percent.