NEw IRS data shows that the wealthiest 1% of Americans earned 21.2% of all income in 2005, up sharply from 19% in 2004, and surpassing the previous high of 20.8% set in 2000, at the peak of the previous bull market in stocks.  The bottom 50% earned 12.8% of all income, down from 13.4% in 2004 and a bit less than their 13% share in 2000.

The 2005 data follows a steady trend toward greater income inequality that began in the 1970s and accelerated in the 1980s and 90s.  The richest one percent now earn nearly the same share as they did back in the 1930s.

 And while total income has risen since 2001, median household income has declined.  This has been a rich man’s recovery.