U.S. Economic Inequality Throughout History

By aharlow

  • The U.S.'s first Income Tax

    The U.S.'s first Income Tax
    In 1913, America saw its first income tax enacted. It's purpose was to attempt to level out the income imbalance by only taxing wealthier individuals, thought it wasn't incredibly successful.

  • Peak in Income Inequality

    Peak in Income Inequality
    During this year, and right before the crash of the stock market that would initiate the Great Depression, income inequality reached a new peak. The riches 1% held 19.6% of all income.

  • The Great Depression

    The Great Depression
    After the roaring 20's, the economy soon came to a halt when the stock market crashed and ignited America's darkest economic period to date -- The Great Depression. Unemployment skyrocketed, businesses failed, and so much more happened during this time.
    Video - The Great Depression Crash Course: https://www.youtube.com/watch?v=GCQfMWAikyU

  • Increase in Union Membership

    Increase in Union Membership
    Thanks to the New Deal enacted by President Roosevelt, union workers now had more of a voice than they previously did. During this time, the country saw an overall increase in productivity and income equality.
    Video - The New Deal in 3 Minutes: https://www.youtube.com/watch?v=WvcWeNf9g6A
    Quiz on the History of Unions - https://quizizz.com/admin/quiz/581784302c7e59d56de91627/labor-unions

  • Inflation Begins

    Inflation Begins
    Though World War II had been over for almost twenty five years, the impact of it on the economy was just now beginning to show. This period was a stagnate one for American economics which was beginning to see the beginnings of inflation.

  • The Great Divergence

    The Great Divergence
    Union membership begins to fall during this time and income inequality is on the rise again. This time period was coined "The Great Divergence" in which the top 1% of individuals possessed 8% of all income.

  • Recession Begins

    Recession Begins
    Recession begins once again, with the happening of 9/11 and the dot com bubble largely to blame. This time period put a strain on household income despite it being short lived.

  • Great Recession Begins

    Great Recession Begins
    This time, the recession took an even bigger toll on household incomes, which didn't recover until around 2015. Two of the biggest industries effected by this time period were banks and real-estate.
    Video -
    Here's What Caused the Great Recession: https://www.youtube.com/watch?v=yM0uonkloXY

  • An Increase in Job Availability

    An Increase in Job Availability
    This time served as a representation of American strength and perseverance. Millions of new jobs had been created and it was as if the recessions in the early 2000's were losing their grip on the economy.
    Article on The Economy in 2013: https://obamawhitehouse.archives.gov/blog/2013/12/19/economy-2013#:~:text=The%20strengthening%20of%20the%20economy,in%20excess%20of%20two%20million.

  • Unemployment Rates Look Promising

    Unemployment Rates Look Promising
    In November of 2019, unemployment rates were 3.5% -- a rate that had not been observed for almost 6 decades. Household incomes were also on the turn around.