Did the 1990's Boom Help
Everyone to Prosper Equally?

I know it's a silly question, but I had to ask it anyway. No, everyone did not benefit equally from the 90's growth boom. Duh. The biggest share of the benefits was reaped by those already with the greatest wealth across the nation. Got something to back up this claim? Yes indeed I do. I should say the Federal Reserve Board has the proof.

The Federal Reserve Bank just released a new survey report showing that economic inequality increased markedly as the boom of the 1990's fizzled. While incomes increased in most income groups, the survey results suggest that the benefits of economic boom were widespread but extremely uneven. The wealth of the nation's top 10 percent of incomes surged much more than wealth of those in any other group. The net worth of families in the top 10 percent jumped 69 percent, to $833,600 in 2001 from $492,400 in 1998. Meanwhile, the net worth of families in lowest fifth of income earners rose 24 percent, to $7,900. The median accumulated wealth for families at the top was about 12 times that of lower-middle-income families through much of 1990's. The median net worth of the top earners group was about 22 times as great in 2001.

The survey also showed that more than half of all families own stocks, either directly or through their mutual funds and pension plans. It also indicates that Americans borrowed more in 2001 than in 1998.

The Federal Reserve survey was conducted at the end of 2001, when the economy was in a recession and compares income and other financial indicators during the 1998-2001 period.

Get the full report here.