The top 1 percent’s share of the nation’s total adjusted gross income was 17 percent in 2009, down from 23 percent two years before. But those people are still earning more than the entire bottom half of the population.

The first chart shows the share of national income that goes to families at different points of the income distribution. Since the mid-1980s the top 10 percent of Americans have increased their share at the expense of everybody else. But the lion’s share of these gains accrued to the richest 1 percent; and half of those gains went to the top 0.1 percent…

It’s hard to believe today, but from the 1960s to about 1980 workers in finance made little more than those in the rest of the private sector, on average. Then, things changed: from the ’80s on, administrations from both parties embraced deregulation, undoing many of the rules put in place in the wake of the Great Depression to limit banks’ riskiest, and most lucrative, investments. Gone were the limits on interstate banking, down came the wall separating commercial and investment banks.