Public Economic Discussion

Thomas Piketty and Emmanuel Saez created a data series that depicts the share of total income earned by the top 1% of income earners in the U.S. To do this, they used IRS tax data. Their chart (below) was a large jump in the share of the top 1% from 1987-89. Did inequality increase that much all in two years? What happened?
https://www.studypool.com/uploads/questions/419785/thumb_20201024185805screen_shot_2020_10_18_at_9.47.21_pm.png

Sample Solution