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.

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Online:

Pew Research Center: www.pewresearch.org

 

Comments

anthras

If trickle down method has proven not to work I was hoping that you could advise us what method will work ????????????????

The Big Dog's back

Capitalism, middle class's worst nightmare.

Contango

Yea feudalism was SO MUCH better. :)

4shizzle

Plutocracy is best !!!

getreal08

Where in the world can you go from nothing to something? Where in the world can you go from not having a dime to your name and make a million if you want. Where in the world can you do more and have more than in America that my friend is called capitalism and I love it. And for everyone who gets government hand me out should be kissing the capitalist country ground because if it was for greedy money hungry people none of that would be possible

The Big Dog's back

Yeah, I don't know how all those other countries survived all these years without capitalism. We (the middle class) have been conditioned to think capitalism is good.

coasterfan

THIS is exactly the baloney that the 1% have sold to the poor and middle class for years: that everyone has the chance to become a millionaire. The reality is that few if any will move from one class to another. There just isn't a realistic path for a schoolteacher, fireman or Walmart worker to own a mansion someday. And that's even more the case today, which is what this article points out. I don't have a problem with capitalism, but not when it's corrupted by wanton greed. The millionaires never seem to create as many jobs, as well as they simply hoard their millions. And when they DO create jobs, it's often overseas. The rich are NOT our heroes. Not like they may have been 50-100 years ago.

4shizzle

very well said

S w Rand 2016

re: coasterfan

- Capitalism offers far more upward mobility than Socialism and/or Communism, correct?
- Capitalism offers far more incentive for the world to innovate, yes?
- Try electing a true populist candidate, like Senator Rand Paul, and let us see if the people who own businesses are suddenly no longer afraid of throwing their cautions to the wind and investing further in America again.

S w Rand 2016

re: coasterfan in general

This nonsense has gone far enough. Most of the businesses in America are small businesses and they are getting hit hard. Your party, the Democrat party, is well-known as the Big Government party but, as few have yet noticed, they are also the Big Business party. Why else would the major corporations be doing just fine while the small businesses are in danger of being wiped out? Answer: Democrats want Big Government and they know that, in order to have that, they must also be good bedfellows with the major corporations. Therefore, as we can see, they are doing their best to bring small businesses down so that all which remains will be Big Government and mega-corporations.

To be clear, I do not trust the old guard of Republicans either. I put my hope in the younger generation of Republicans, Senator Rand Paul being chief among them.

getreal08

I was hired by stock holders of a company to make them more money. Because I make them more money by doing a good job guess what I get paid more. Now isn’t that weird I know right what would you call that “Trickle-down-economics” and because I make more money I can go out and buy a house a car and oh my god what is that the money I spent on the things I want had to be made shipped and sold wow what do you know they need employees to make this happen omg what is going on I just don’t know what is that called again.

S w Rand 2016

I will re-post getreal08's comment with some more punctuation, in an attempt to clarify it for those who are not accustomed to reading what I call "textspeak."

> I was hired by stock holders of a company to make them more money. Because I make them more money, by doing a good job --guess what!-- I get paid more. Now, isn’t that weird? I know, right? What would you call that? “Trickle-down-economics?”
And, because I make more money, I can go out and buy a house, a car and -- oh my god, what is that!? The money, I spent on the things I want. And they had to be made, shipped, and sold. Wow! What do you know? They need employees to make this happen! Omg! What is going on!? I just don’t know. What is that called again? <

getreal08

I was hired by stock holders of a company to make them more money. Because I make them more money by doing a good job guess what I get paid more. Now isn’t that weird I know right what would you call that “Trickle-down-economics” and because I make more money I can go out and buy a house a car and oh my god what is that the money I spent on the things I want had to be made shipped and sold wow what do you know they need employees to make this happen omg what is going on I just don’t know what is that called again.

VOTENO

Don't blame me. I voted for Romney.

coasterfan

If you voted for Romney, you are irrelevant, since this is 2013, and Mitt's policies are strictly 1950.

S w Rand 2016

And coasterfan makes these claims, knowing full well that Romney mostly got his votes from people who merely thought he would hurt the country a little bit more slowly. The "lesser of two evils" thing.

VOTENO

Don't worry. Senator Sherrod Brown will fix it

Contango

BTW: If you have an annual income of $38K, you are in the richest 1% IN THE WORLD.

Poverty is relative.

The Big Dog's back

Bullspit.

Fromthe419

Actually Big Dog he's not too far off in 2011 it was 47,500 per year
http://dailycaller.com/2011/11/0...

S w Rand 2016

Big Dog thought Contango was referring to America only.
Big Dog might change his tune if he thought that maybe, just maybe, President Obama would agree that even "poor" Americans are "rich" compared to most of the world.

reporter54

Every time you punch in at your minimum wage job, the rich get richer. Every time you pay a late fee, the rich get richer. Every time you buy a house or stuff for your house, the rich get richer. Stop making them rich.

S w Rand 2016

Your solution to our economic crisis is to stop going to work, don't get a house or any household items, and force the collection agencies to come after you?
Or, were you just using sarcasm to make a point against the Far Left?

kal-el

A friend once told me, "there's no one dumber than a poor Republican."

The plutocrats are laughing at you.

VOTENO

I had a friend tell me there's no one dumber than a dumocrat.

Contango

Too U.S. focused. Pay attention to the economies in the rest of the world.

Like it or not, globalization IS the REALITY.

This ain't about politics - neither party has the answer.

A currency collapse is coming.

The Euro is in trouble and Japan is printing like mad.

The USD $ is the cleanest shirt in the dirty laundry and will be the last to fall.

All reserve currencies have their day. Ours too is coming to an end.

http://armstrongeconomics.com/20...

4shizzle

One World Economy, government,religion, and dictator coming.

goofus

He's here and his name is Obozo

4shizzle

no he's not

4shizzle

@ kal-el

Jay Leno had a joke about that. Kinda goes like this:

What do you call a Republican who is not a millionare that votes for Romney?
A sucker.

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