This chart is very interesting and shows a disturbing trend; one that every American should be taking note of. The median family income and GDP per capita growth trends were virtual twins until around 1970, both moving steadily upward. The two have been growing apart since then, with median family income trending well below the GDP per capita’s growth trend.
One thing Krugman’s write up does not contain is any real reasons for this growth disparity; he attributes it to the 1%’ers, of course. I’ll try to offer a more realistic, practical reason for the trends we see by adding one data point to this chart:
The line drawn represents the day President Nixon closed the gold window (video) and ended the Bretton Woods system. Of course, the reasons highlighted in the video were, and are, negative impositions on the market. This loss of a natural restriction, combined with the Federal Reserve’s monetary monopoly and the Federal Government’s taste for spending, caused the debt to take off shortly after.
Correlation is not necessarily causation, of course, but this data certainly draws very interesting parallels.