著者

佐々木 隆雄

出版者

経済理論学会

雑誌

季刊経済理論 (ISSN:18825184)

巻号頁・発行日

vol.45, no.1, pp.10-19, 2008-04-20 (Released:2017-04-25)

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In this paper I try to describe some aspects of the increase in income inequality in the United States since the 1970s based on the results of previous research on this subject, and to consider some underlying causes of these phenomena. 1. Facts about the income distribution As to the trends in the family income distribution, there was a mild trend toward equalization after the World War II, which underwent dramatic reversal after the 1970s. The increase in income inequality in the past 30 years has many aspects but the most interesting aspect may be the dramatic concentration of income at the top to the disadvantage of vast majority. Owing to this process, pre-tax family income shares of top groups have returned to the very high levels of the pre-war or pre-Great Depression era from the low levels reached in the 1970s, reversing the also remarkable income equalization process from 1930s to 1970s. It may be said that the United States is the only advanced country whose top income shares returned to the levels of the pre-war days. Data on the income components tell us that the conspicuous decline of income shares of top groups from the 1930s to 1970s was largely due to the large decline of capital income shares of these groups as a result of the equally large decline of their asset shares. The latter was due to the effects of economic turbulence of the Great Depression and the World War II as well as of the introduction of the progressive taxation in this period. The increase in income shares of top groups in recent times is mainly due to the dramatic increase in their labor income shares, rather than in their capital income shares. Among the 'working rich' in these days are captains of new industries, Wall Street financiers, executives of big corporations and other celebrities. 2. Speculation on the causes of the changes in income distribution The causes of the decrease in income inequality in the early period and its remarkable reversal since the 1970s seem to be related to the changes in the American capitalist system in their respective periods. The Great Depression, New Deal and the World War II contributed to the equalization of income distribution through the economic disturbances and direct government control of private economy. Institutional changes of the labor market, such as the different states of unionization (growth of union power in early period and the decline of unionism in later period) and the difference in the administration of the federal minimum wage system both shaped some of the trend of wage differentials in each period. Difference in the degree of internationalization and in the style of business management caused by changes in the business environment in each period may have contributed to shape the trend of respective period. The generally accepted view on income distribution also changed and shaped the trend in it in each period. The experiences in the Great Depression, the total war and the war against communism all set much value on social solidarity rather than fierce capitalistic competition, contributing to a more egalitarian view of distribution. In the later period some worsening of economic condition or the sense of growing economic crisis owing to oil shocks, slowdown of productivity growth and the competitive challenges from other countries emphasized the creation of wealth rather than the distribution of wealth, competition rather than social solidarity, thus contributing to the less egalitarian view of distribution. All these systemic factors should be considered in studying the causes of the trends in income distribution.