http://globalagenda.co.uk/blogs/democracyi...1/04/inequality
Also the links Winship provides in this section:
speak of growing income and wealth gaps, so I'm not sure what he's talking about. This one in particular makes the case that most of the wealth for middle-class households comes from their homes, which have seen massive drops in value since 2007, while most of the wealth for the top 1% comes in the form of stocks, which are doing quite nicely. The majority of the rise for the middle class was wiped out by the bubble, which doesn't hold true for the top 1%, since only a small portion of their wealth is held in real estate.
Additionally, Wolff has an updated working paper from 2010 that more clearly illustrates that wealth inequality is neither basically flat nor at a historic low through 2007 (see Table 2). It also shows the huge inequality in where wealth was held in 2007--again, for most people, it's in their homes, and they've taken massive losses in wealth because of substantially reduced home values. Perhaps Winship is correct in pointing out that the share for the top 1% is slightly overstated by Stiglitz, but a quick glance to the Gini Index in the same table shows that wealth inequality has indeed been climbing steadily since 1983. It also shows the steady climb of income disparity.
Table 4 shows that the top 1% have seen an increase in net wealth of just over 100% since 1983 while the bottom 40% have seen a net decrease of 62.9%. The top 1% also took in just over 35% of all wealth gains from 1983-2007, and the top 5% combined just over 70%. Income disparity is even worse.
Does Winship still want to maintain that wealth inequality has been "basically flat" and is "historically low?"
edit: Abstract of the Wolff 2010 paper:
Note that, when these projections were made on July 1, 2009, the S&P was down over 40%. It's since climbed back to being down only 13%. Given that the stock market has recovered nicely since then and that home prices are basically unchanged or even slightly down in 2010Q4, the inequality will be even more substantial and the Gini coefficient will be even higher, perhaps nearing 0.9.