The latest report from the Federal Reserve tells us that wealth of the middle class declined by more than a third between 2007 and 2010. The wealth of the top 10 percent, however, grew by two percent.

These statistics will no doubt fuel partisan politics by some who argue that the rich have gained at the expense of the rest and that the system is rigged for the rich.

There is, however, a simpler, economic reason behind the disparity.