Me: I am watching a show on financial titans of the late 19th C and early 20th C. I see lots of public unrest about the wealth concentration. I wonder what stats show about wealth concentration then vs today
ChatGPT: Wealth concentration in the late 19th and early 20th centuries was indeed stark, especially during what is known as the Gilded Age (roughly 1870-1900) in the U.S. This period saw rapid industrialization, which created significant wealth for a small elite group, often referred to as "robber barons." Figures like John D. Rockefeller, Andrew Carnegie, and J.P. Morgan amassed fortunes that were unprecedented, leading to deep economic inequality.
Some ways to compare wealth concentration then versus now include:
1.
Income and Wealth Distribution Ratios- In the late 19th century, the top 1% of American households held an estimated 40% of the country's wealth, with a significant portion controlled by a few industrialists.
- Today, the top 1% in the U.S. hold about 32-40% of the wealth, a similar range. However, recent decades have seen a marked increase in wealth concentration, with the top 0.1% alone holding nearly 20% of all wealth.
2.
Share of National Income- In the early 20th century, the top 1% of earners took home about 18-20% of national income, peaking around the 1920s before the Great Depression.
- In recent years, this share has returned to similar levels. By some estimates, the top 1% today capture over 20% of national income, mirroring the peak inequality seen in the 1920s before income taxes became more progressive.
3.
Government Policy Impact- During the Gilded Age, there were few regulations to curb wealth concentration. Antitrust laws (e.g., the Sherman Antitrust Act of 1890) eventually aimed to prevent monopolistic practices, but enforcement varied, and loopholes were often exploited.
- Today's wealth concentration is influenced by tax policies, global markets, and technological advancements that have created new billionaire classes, especially in technology and finance.
4.
Public Reaction and Social Reform- The public pushback in the Gilded Age was intense, leading to labor strikes, union formation, and movements like the Populist and Progressive movements. These eventually led to reforms, including income taxes (with the 16th Amendment in 1913) and stronger labor laws.
- Similarly, the recent growth in wealth inequality has sparked movements advocating for progressive taxation, higher minimum wages, and corporate regulation. Today's disparities are often discussed in the context of broader systemic reforms.
Despite the different contexts, many economists and historians see a return to Gilded Age-like inequality today, driven by structural economic changes and policy decisions.
