But CEO pay is the highest it has been in 40 years and the income disparity is at the highest level since before the great depression. Surely we do not need unions or significant workers rights legislation because that "trickle down" is working out sooooo well for the middle class. A better phrase to use would be a "torrent up" because that is were the wealth and income of this country has been directed.

Consumption levels show less inequality? Consumption of what? Food? Clothing? Yachts? How is consumption being measured, and what consumables are included? Sounds like another AEI riff on how people aren't really poor because they have microwaves. Yes, that certainly amps up the net worth, doesn't it?

And yet, even though the 400 families at the top have more wealth the the bottom 150,000,000 of us (see the excellent documentary, "Park Avenue"), the Republicans, and the 48% of Americans who voted for them, demand that taxes be even lower on the rich. We've become a banana republic, and all because we chose it! What gives??

Working people have been sacrificing for over thirty years now - with lower wages, less buying power, higher banking fees, outsourcing of jobs, higher commodity prices, and all the rest. It's way past time for the 1% to "share the sacrifice" without calling on the rest of us to give up anything else, certainly not the last strings of a tattered safety net already shrinking on its own.

As far as "Trickle Down" economics goes, it -- also known as "Reaganomics" -- has FAILED. I laughed when Dick Cheney claimed that "Ronald Reagan PROVED That Deficits Don't Matter!" Oh, Really? Well, after a 30+ year party involving: Deficits, Taxation Games, Uncontrolled Spending, etc. the United States now has a Debt of $16+ TRILLION. In addition to the lower "Real" wages outlined in this good article, the U.S. Debt is a drag on the Nation's economy too. I don't know how we're going to get ourselves out of this trap. I'm keeping my fingers crossed that the President, and Congress, can find the solution that I just can't seem to figure out. Economics was one of my WORST subjects in college.

More people making higher salaries means more revenue, smaller deficits and possibly surpluses, a stronger Medicare and Social Security, and a more robust economy. Of course that would mean the wealthiest 0.01% part with some of the money to which they feel entitled.

4 years of a democratic president and congress (most of it) have resulted in a decreased economy for the majority of Ameicans, yet we still vote for four more years of the same. Not worth getting upset. It will continue to be bad economic news.

American corporations that have enjoyed middle class taxpayer paid for corporate welfare and protection are destroying America. And for those that are too BLIND to see the writing on the wall, get some glasses of reality. You are going to lose all you have next, guaranteed.

johnmpls: Are you serious? How old are you? Wages have been dropping in real terms since the early eighties! This has got very little (if anything) to Obama. And where do these people get their facts from? Workers rights, destruction of Unions and Competetive pay issues are all but gone..... And some of you righties blame Obama! Get Real!!

johnmpls - It's been on the decline for 40 years, not 4. While it's not great under Obama, it's essentially the same as what it was under all of his predecessors.

This is capitalism in action. Governments can only set minimum wage levels. Actual pay is set by employers, and they've been cheap for a long time. It's possible that the low wages are actually causing problems, because with less discretionary income people don't buy goods and services, so companies don't sell products, and that means either fewer employees or lower wages. It's a nasty circle with no real solution.