The truth has been documented by the Center for Budget Priorities, in A Guide to Statistics on Historical Trends in Income Inequality.
Census family income data show that the era of shared prosperity ended in the 1970s and illustrate the divergence in income that has emerged since that time. CBO data allow us to look at what has happened to comprehensive income since 1979 — both before and after taxes — and offer a better view of what has happened at the top of the distribution.
As Figure 2 shows, between 1979 and 2007, average income after taxes in the top 1 percent of the distribution rose 277 percent, meaning that it nearly quadrupled. That compares with increases of about 40 percent in the middle 60 percent of the distribution and 18 percent in the bottom fifth.
Faux News Channel tries to deny the reality of stagnant and declining middle-class incomes using cherry-picked statistics.
More truth: FDL’s David Dayen notes that the expansion in manufacturing employment in recent years has been accompanied by flat wages. No wonder the benefits of the so-called “economic recovery” are going mostly to the top.