Wealth gap grows as rising corporate profits boost stock holdings


Protesters block a courthouse entrance in Los Angeles on Aug. 21, 2020.

VALERIE MACON | AFP | Getty Images

The rich really are getting richer. 

Two Federal Reserve economists recently examined the evidence and concluded the gap is getting even wider.

Federal Reserve Board economists Isabel Cairo and Jae Sim found that the inequality gap has risen because owners of assets like real estate and stocks are benefiting from the rise of corporate power and rising profits, along with the decline of labor.

 “The before-tax profits share of U.S. corporations has shown a dramatic increase in the last few decades,” the authors wrote. The rise of corporate profits was strongly correlated with the…


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