A recent report from Rand, a think tank in California, titled "The Trend in Inequality among Families, Individuals, and Workers in the United States" by Lynn A. Karoly confirms that the gap between the haves and have-nots is widening and that the middle class in the United States is shrinking. Latinos have been particularly hard hit. There has been a precipitous drop in labor income for men on the low end of the income scale, with an income loss for Latino men as much as 22 percent at the low end. In terms of median income, only Latino men experienced a real decline between 1970 and 1987; White males held their own and African American males showed modest growth. Median family income increased for all groups, but it grew by only 8.6 percent for Latino families, in contrast with a 24.8 percent increase for White families. However, Latino women were the only group of low-income women to show improvement relative to the median in each 5-year period since 1970. The most ominous statistic is the drop in the real median value of business holdings owned by nonWhites and Latinos. Other studies support the contention that the economic pie is divided more unequally than it was in 1980, with the share held by the middle class shrinking. (Contains 6 references.) (SLD)