New Report on Wealth Inequality in the US

Between 2005 and 2006, the average income (before taxes) of the top 1% of US households (incomes above about $375,000) increased by $73,000, after adjusting for inflation. The average income of the bottom 90% of households increased by just $20. The share of the nation's income held by the top 1% is the highest that it's been since 1928.

Here's another: Since 2002, the average income of the top 1 percent of households has risen 44%. The average income of the bottom 90 percent of households has risen about 3 percent.

A lot of numbers, I know, but the reality behind them is felt by families every day. Leslie Craft, a KFTC member in Perry County, says that middle-class incomes aren't keeping pace with rising costs of health care, gas, child care, and other basic living expenses. "My family is poised to spend more than a fifth of our gross income on medical expenses this year," Leslie says. "This will keep us all insured, make sure John is not sick, and make sure our baby gets to have a hospital birth. If you add in our regular out-of-pocket expenditures of $2,000 annually, healthcare will eat-up over 20% of our projected, combined incomes."

With 20% of their incomes devoted to health care, a chunk for child care, a bit to keep themselves clothed and fed, there isn't a lot left over, despite their middle-income status. After they add in gasoline...wait, let's pause on that, too: "I spend $250 more monthly on gas now than I did this time two years ago, even though our overall fuel consumption has actually been reduced by purchasing very fuel efficient cars. We pay $5,700 yearly, if gas stays at $3.00 per gallon. It's more than our mortgage, but as good as can be expected in a rural area."

After all these basic expenses are factored in, Leslie and her family are left relying on savings and hoping that nothing goes wrong. Leslie explains, "If the car doesn't break down, and we don't indulge at all, and we potty-train immediately, we will still need more money. This is what I call 'feeling the pinch.'

"All I want to do," says Leslie, "is sock away a few bucks for tough times, make sure I save a little money for my kids' college educations, pay for the essential services and durable good that we actually need, and see a damned doctor when we need care. This year, I can do only two out of four. And the goods I will have to make do with will probably be a little less than durable, if you know what I mean."

Leslie's family is, by the numbers, anyway, a middle-income family. But their placement is more complex as they consider how financially secure they feel. And this experience is more and more common as the nation's wealthiest 1% absorb more and more of our collective resources. While families in Kentucky and across the nation are trying to find some solid ground away from the edge of the widening wealth gap, it's difficult to see any evidence that many legislators are aware that so many families are teetering.