Top earners have taken some hits which typically have not been widely reported. In the US between 2007 and 2009 for example:
- 99.9th percentile (the obscenely rich) a fall of 34% in income
- 99.0th percentile (merely filthy rich ) a fall of 16% in income
- Median a fall of 1% in income.
As Greg Mankiw’s research has shown – drawing rich earnings is on average a good deal more risky than drawing median earnings – which is why we depend on the rich to take the risks that bring progress… one of the most difficult concepts to sell.