CNBC's Robert Frank Explains New Income Inequality Data

CNBC wealth editor Robert Frank joined "Closing Bell" to discuss the latest income inequality data.
By Giovanni Bruno ,

NEW YORK (TheStreet) --New data suggests income inequality between the 1% and the rest of the American population is below its 2007 peak. 

CNBC's wealth editor Robert Frank discussed the data on "Closing Bell" this afternoon.

"Data shows the average income for the top 1% was $1.36 million in 2015, up from 2014, but is still 13% below its all-time peak in 2007," Frank said, citing University of California Berkeley economics professor Emmanuel Saez. Saez is considered the leading expert in terms of income data. 

Moreover, "average incomes for all the U.S. are also down from their peak, but have regained more ground than the 1%, down only 7% from their peak in 2007. The 1% also has a lower share of national income than they once did. Controlling 22% in 2015, down from 23.5% in 2007," Frank explained.

That being said, "no one should feel sorry for the 1%," Frank continued. The 1% still earns more than 20 times than the broader population, however, income inequality remains below its peak in 2007.

The time period by which one is studying the figures also remains crucial to their explanation. "The rich lost more during the crisis, so if you go back 10 years the wealthy are still below the rest of the population in terms of gaining ground. But in the past 7 years since the crisis, the wealthy have gained at a faster rate so it's absolutely critical what time period you're talking about," Frank cautioned in terms of attributing the data.

When asked if he sees the trend continuing, "It all depends on what happens with stock markets, the wealth of the 1% is entirely dependent on what happens with the Dow and the S&P," Frank said. He expects the data to remain relatively flat for the foreseeable future.

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