From the Economist -

Quote 1: “Back in 1979 the average income of the top 1% was 133 times that of the bottom 20%; by 2000 the income of the top 1% had risen to 189 times that of the bottom fifth.

Quote 2: “Thirty years ago the average real annual compensation of the top 100 chief executives was $1.3m: 39 times the pay of the average worker. Today it is $37.5m: over 1,000 times the pay of the average worker. In 2001 the top 1% of households earned 20% of all income and held 33.4% of all net worth. Not since pre-Depression days has the top 1% taken such a big whack.”

The article argues that American meritocracy - the ability to rise to a higher level in society than the previous generation may be on the decline. While fierce competition stills exists, it is mostly among the the elite level of society. Those who are not already a part of this group face obstacles that make it more difficult to break into the top level. The article argues that one reason is “the education system is increasingly stratified by social class, and poor children have a double disadvantage. ” The poor continue to attend schools with fewer resources than the counterparts who attend elite private schools. At the higher education levels as always they are challenged by the availability of financial resources with becoming relatively more difficult in recent years with the shift favoring Stafford loans over Pell Grants. And as always there are the well known “legacy preferences” at elite universities. These preferences favor the sons and daughters of alumni, allowing those at the top levels to remain among there own.

Source: Meritocracy in America: Ever higher society, ever harder to ascend