Rich get richer

Report: Richest 7% got richer during recovery
Associated Press
Apr 24, 2013

The richest Americans got richer during the first two years of the economic recovery while average net worth declined for the other 93 percent of U.S. households, says a report released Tuesday.

The upper 7 percent of households owned 63 percent of the nation's total household wealth in 2011, up from 56 percent in 2009, said the report from the Pew Research Center, which analyzed new Census Bureau data released last month.

The main reason for the widening wealth gap is that affluent households typically own stocks and other financial holdings that increased in value, while the less wealthy tend to have more of their assets in their homes, which haven't rebounded from the plunge in home values, the report said.

Tuesday's report is the latest to point up financial inequality that has been growing among Americans for decades, a development that helped fuel the Occupy Wall Street protests.

A September Census Bureau report on income found that the highest-earning 20 percent of households earned more than half of all income the previous year, the biggest share in records kept since 1967. A 2011 Congressional Budget Office report said incomes for the richest 1 percent soared 275 percent between 1979 and 2007 while increasing just under 40 percent for the middle 60 percent of Americans.

Other details of Tuesday's new report:

• Overall, the wealth of American households rose by $5 trillion, or 14 percent, during the period to $40.2 trillion in 2011 from $35.2 trillion in 2009. Household wealth is the sum of all assets such as a home, car and stocks, minus the sum of all debts.

• The average net worth of households in the upper 7 percent of the wealth distribution rose by an estimated 28 percent, while that of households in the lower 93 percent dropped by 4 percent. That is, the mean wealth of the 8 million households in the more affluent group rose to an estimated $3.2 million from an estimated $2.5 million while that of the 111 million households in the less affluent group fell to roughly $134,000 from $140,000.

• The upper 7 percent were the households with a net worth above $836,033 and the 93 percent represented households whose worth was at or below that. Not all households among the 93 percent saw a decline in net worth, but the average amount declined for that group.

• On an individual household basis, the average wealth of households in the more affluent group was almost 24 times that of those in the less affluent group in 2011. At the start of the recovery in 2009, that ratio was less than 18 to 1.

• During the study period, Standard & Poor's 500 stock index rose by 34 percent, while the Standard & Poor's/Case-Shiller index for home prices fell by 5 percent.

___

Online:

Pew Research Center: www.pewresearch.org

 

Comments

VOTENO

Thanks Obama.

WiseManOnceSaid

hahah Thanks Obama. Haha. Blaming the economy on him. HAHAHAH. Funny stuff

sandtown born a...

Same old thing blame the democrats for all that fails or slips further into trouble and somehow discredit any accomplishments.

shucks

Since the Repubs couldn't keep him from being re-elected with their hate, lies, and obstructions, they'll try to destroy his legacy.

coasterfan

Try as Republicans might, they can't erase the stunning economic collapse of 2007-2008 that happened under Bush's watch, and which happened as a direct result of his policies of increasing spending while cutting incoming revenue. In their warped world, everything was fine until Jan. 2009. Luckily, a majority of Americans do remember what happened, and when it happened. Which is why Obama got re-elected.

arnmcrmn

...and 5 years into his presidency, people are getting richer like never before. Thanks Obama. :)

S w Rand 2016

re: coasterfan said "Luckily, a majority of Americans do remember what happened, and when it happened."

Uh, most Americans still do not understand what is happenING. Not happened. HappenING. Printing Dollars out of thin air, especially in such a frenzy as we are printing them, creates two problems (if not more problems that I am yet unaware of).

#1 Malinvestment http://en.wikipedia.org/wiki/Mal...
And this is what Malinvestment does to the economy https://www.youtube.com/watch?v=...

#2 Currency devaluation (in our case, our Dollar going down in value against other competing currencies in the global market) which is explained, quite bluntly, at http://www.youtube.com/watch?v=L...

I wouldn't trust any presidential candidate who does not publicly acknowledge these issues (and neither Bush nor Obama have done so). While Senator Rand Paul has not proposed, as senator, to do anything about it, the very fact that he has publicly spoken about it tells me that he is the only candidate I can trust in 2016. Especially when you consider the fact that he has already outlined a budget proposal which balances the budget in 5 years without hurting Social Security or Medicare. You can see, quite clearly, why he is the go-to guy for such a crisis as this.

VOTENO

Thanks Obama.

shucks

Thanks Bush and GOP, for ruining our economy and our nation.

sandtown born a...

Thank you GOP

Fromthe419

Actually thanks Republican Congress and Democratic President Clinton ruined our economy and nation. NAFTA (killed American jobs) and Modernization Bank Act that repealed Glass-Steagall (nuked our economy) are the direct result of Republicans and Democrats. Both parties share the blame because they do not represent us, they represent big business and financial oligarchs. We vote for whoever they decide to be put on the ballot. They are all plutocrats.

getreal08

Thanks Obama you suck!!!!!!

VOTENO

Thanks obama.

goofus

It's truly amazing when the DNC develops a talking point how with the accomplices in the lamestream state run media they continue to hammer at the same point day after day, the old class warfare mantra. It's like Obozo never won.

coasterfan

Goofus, what color is the sky in the alternate world where you live?

getreal08

Gas Prices up 96% Thanks Obama
Welfare up 32% Thanks Obama
National Debt up 6 TRILLION Thanks Obama
Unemployment up the list goes on and on and on

coasterfan

Get real, perhaps you have forgotten that gas hit an all time average high of $4.28 per gallon in summer 2008. But it's a stupid topic since the president has little, if any control over gas prices. Unemployment is NOT up - where the heck are you getting your info? It has gone down steadily since mid-2009. Please stick to factual material. Words have meanings...

arnmcrmn

Who holds the all time high month long gas avg. hint hint. It isn't Bush by a long run. Gas has been a run away train under Obama. You simply can't win that argument. Loser.

WiseManOnceSaid

Get Real. Gas prices are run of DEMAND. Maybe you had economics in high school, but there is this concept called SUPPLY & DEMAND. When more people want something (OIL)and the Supply is about the same (except US record production) the price goes up.... as much as you would like to think obama is raising gas pricing to scare the anti science right wingers into supporting global warming, it's simply not true. Take some class or read up. At least some of the Obama haters do research and can understand.

Contango

Oil production and gasoline refining are two different industries. You can have a glut in one and a shortage in the other.

Three things move markets: supply, demand and speculation.

anthras

On April 25th.2008 then Senator Obama gave a speech in front of a gas station in Indianapolis. He did promise that he would lower gas prices if elected and blamed Bush and Cheney for the high gas prices. It seems that maybe he was lying or ignorant of the facts. Maybe a wise man could give him a crash course and explain the supply & demand thing to him.

getreal08

Thank you for economics 101. You just proved my point when Bush was in office and the price per gallon was going up all I heard over and over and over again it was Bush fault and his “oil buddies” I will say the same thing Supply and Demand and WOW what feedback I would get. You don’t know what you are talking about. It is Him and his war hungry buddies. Now that shoe is on the other foot and Obama did say over and over again that he would get the price of fuel down no no no it is supply and demand. I knew he couldn’t I know he doesn’t control the price oil just like BUSH DIDN’T. I know Bush was not perfect he and every president have their problems. What makes me the maddest is when Obama wants to steel from the rich to give to the poor. Please that has been proven over and over again doesn’t work you end up running out of money. When you take $1.00 dollar and break it down with and without government you can see what works and what doesn’t very simple again 101. We do need government we do need laws for a civilized group of people but if you give the government too much power all is lost and we will implode from within. Look at all the bankrupt cities in the US

coasterfan

Actually, the only thing that has been proven is that Republican economic policies don't work. Yt, they keep trying to sell the Trickle Down baloney to Americans. We are all still recovering from the Bush Recession, folks. It was the worst economic disaster over the past 90 years, and the same people who caused it still think that they have the answers. Right....

S w Rand 2016

re: coasterfan says "Actually, the only thing that has been proven is that Republican economic policies don't work."

Oh yah? Then, how come, while President Obama is offering up cuts to Social Security and Medicare with no hope at all of ever balancing the budget again, Republican Senator Rand Paul has submitted a budget proposal which balances the budget in 5 years without hurting either of those programs?

Oh, coasterfan. Ever the conspiracy theorist. He claims the Right wing, which swears by Capitalism, is trying to crash it. And the Left wing, which cries out against Capitalism, is trying to save it. Sure, sure.
Never mind the fact that Democrats were running both Housing and Banking, where the financial crisis spiraled out from.
Never mind that Fannie and Freddie was a Left wing idea and that Bush warned Congress 17 times to get control of it before they did some serious damage to the economy.
And, yes, never mind the fact that most of the business owners who vote Republican (the alleged small government party) are small businesses and that most of the corporations and organizations, which would effectively become "the right hand of the State" if the so-called free markets collapse, continue to fund the Democrat (Big Government party) campaign.

Either the Democrats are solely to blame or both parties are to blame. I would say both have a hand in it but you can take your pick. Either way, to say that it could only be Republicans is just nonsense.
Democrats had control of Congress from the beginning of 2007 until the beginning of 2011 and, by the way, took a "shellacking" in the 2010 midterm elections for a reason.

arnmcrmn

If we are still recovering.... How are people getting richer than ever before! Thanks Obama

getreal08

I asked a man sleeping on the street for a job he looked at me weird. If the rich are EVIL and do nothing to help us. Than all the jobs must be created by poor people right you really only have two choices rich or poor. So I go back to what I said I have never been employed from a poor person. Then I should not slap the hand that feeds me. So I say hell yes rich get richer so I will be able to get a raise

WiseManOnceSaid

The flaw in your thought is the reason we've had downturns. "Trickle-down economics" does not work in reality. Sure, wealthy people start companies, but that doesn't mean they are passing the wealth down. If it were true the middle class would be recovering, instead policies that were put in place cause the wealthiest to profit more, and the rest show a loss in wealth

Contango

Better read the "meat" of the article:

"The main reason for the widening wealth gap is that affluent households typically own stocks and other financial holdings that increased in value, while the less wealthy tend to have more of their assets in their homes, which haven't rebounded from the plunge in home values, the report said."

How's your IRA or 401(k) doin'?

Wealthy people tend to buy assets that appreciate in value.

Poor people tend to buy assets that depreciate in value.

Read: "Rich Dad, Poor Dad."

WiseManOnceSaid

I've read the book, and don't argue the points. Just pointing out the the job creating trickle down method has been proven not to work.

Contango

Actually didn't like RD/PD - too basic. But I did like that one point that RK made.

The "beauty" of capitalism is that rich/poor are not mutually exclusives. Some rich are getting poorer and some poor are getting richer.

Look at the Pakistani who came to the U.S. with nothing and now owns the Jacksonville Jaguars:

http://www.tampabay.com/blogs/me...

Yes, "supply-side" works – low taxes for all and “reasonable” govt. regulation.

See pre-1999 colonial Hong Kong and Singapore now; other than their people and strategic locations, they have few resources and are economic powerhouses.

Answer my question: How are your investments doin'?

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