Richest 1 pct of Americans responsible for inequalities: economist

Paris, France | Xinhua | The indebtedness of the poorest households in the United States was largely financed by the accumulation of savings of the rich, French economic researcher Frederic Cherbonnier said in an article published recently in newspaper Les Echos.

The phenomenon locks the American economy in a vicious circle of sluggish growth, said the researcher.

Two-thirds of the heritage that the richest 1 percent of Americans have accumulated over the past thirty years have financed the debt of the government indirectly, and the less-rich 90 percent had to compensate for the lack of growth in their income by resorting to debt, according to Cherbonnier.

The less rich 90 percent saw their incomes stagnate, while that of the richest 1 percent have tripled to represent nearly a fifth of national income, he explained, adding that “such strong inequalities penalize American growth.”

*****

Xinhua