This chapter illustrates the depth and breadth of economic inequality in the United States, the stark gap between the rich (the 1 percent) and the rest (the 99 percent). With the top 1 percent earning 20% of the national income, Stiglitz rejects the idea that America is still the land of opportunity; for those now at the bottom, their chance to rise is lessening. However, the loss of opportunity, accompanied by growing inequality, is not solely the result of market forces, and therefore inequality “is not inevitable” (4).

The current level of inequality is new even though some inequality has always been evident in the US economy. Only 30 years ago, the top 1 percent earned just 12% of US income. But the gap between rich and poor continues to grow, with the wealthy getting wealthier and the poorer getting poorer. Those who defend America’s growing inequality argue that the rich deserve what they get because inequality derives from capitalism (i.e., they work harder and are better rewarded); it is the price America pays for a capitalist market; even if the system is unfair, it would be too costly to fix; and when the 1 percent have more income, it benefits the 99 percent too.