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

bullydogs1971

Lawmakers, aides may get Obamacare exemption.
http://www.politico.com/story/20...
imagine that...if this is such a great plan why don't the our leaders want to embrace it....another issue but still a perfect example of the hypocrisy and double standard in this government.

Contango

Lowest U.S. labor force participation rate since 1979:

Mar. 2013 - 63.3%

Mar. 1979 - 63.8%

If Mr. Obama (Carter II) wants to take credit for this "recovery" - it's all his. :)

http://data.bls.gov/timeseries/L...

Contango

coasterfan writes:

"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."

"Hoard their millions"?

Where EXACTLY do they "hoard" them?

In a closet somewhere? Under a bed?

No, "they" put them to work by investing in businesses that helps to create services and products and more than likely JOBS!

Many buy U.S. Treasuries which helps keep the govt. running.

As far as "overseas", why is it that public employee pension trusts (like STRS) invests billion of USD in foreign cos. ?

Did you save & invest when you were a teacher, school janitor or "whatever"? Why?

Looks like the OTPF is making plenty of money - they paid themselves bonuses! GREED?

http://stateimpact.npr.org/ohio/...

arnmcrmn

Amazing when there is bad news its blame Bush, blame the Republicans....from liberals.
Amazing when something good happens its Thank you Obama...................from the liberals.

You cannot go from nothing to something via Socialism folks. It just doesn't work that way.
The liberals still hate capitalism because they haven't done anything with their lives and despise those who have made it.

Are you liberals jealous of Dr.'s, lawyers or someone who created a small company and makes 500K or a million a year? If you answer yes, then please tell us why. Why do you dislike people who have taken on debt, and the risk and made it?

Contango

Remember in Jan. 2013, Pres. Obama signed legislation which "locked in" about 90% plus of the "Bush tax cuts," which benefits the lower and middle classes.

Yet, the dopey lefties still excoriate the Bush era tax cuts! LOL!!!

arnmcrmn

Liberals for the most part are blind mice. Its truly disturbing how they just rant without facts.

4shizzle

ha ha ha! That bounces back on you.

Contango

coasterfan writes:

"He put 2 wars on the country's credit car,"

What the h*ll is a "credit car"? :)

Regardless, name a U.S. war which was PRE-PAID.

We're STILL paying for Johnson's Asian War.

As of last yr., we're STILL payin' for the Mr. Lincoln's War:

http://www.usnews.com/news/blogs...

The Big Dog's back

Bulllllllspit.

Contango

BTW:

For all those nutzy liberal socialists that b*tch about the wealthy and their Cayman Is. accounts; know this:

The Cayman Is. has a 4% unemployment rate (2012).

Maybe some bright bulbs from DC should go there, see what they're doin' and suggest that the U.S. do likewise!

http://cia-world-factbook.realcl...

Contango

"$2 Trillion Underground Economy May Be Recovery's Savior":

"According to the Internal Revenue Service, about $500 billion in taxes were lost last year because of unreported wages, versus $384 billion in 2001."

http://www.cnbc.com/id/100668336

Guess Mr. Obama's taxes and increased business regulation ain't cuttin' it.

Julie R.

I have a cousin who lives in California that laughs over what the people in this area consider rich. He said if you want to see rich come to California. He knows people so rich they wouldn't have to work from one generation to another if they didn't want to ...... they could live off the dividends from stocks alone.

4shizzle

That's investing !

arnmcrmn

And what is so wrong with that? If you made it and can do it.............????? So are you suggesting that once you become wealthy, you have to just give most of it away simply because others think its not "fair"????

Contango

"More Money Printing? Here's How It Could Happen":

http://www.cnbc.com/id/100673025

Yea, the economy and jobs are doin' GREAT under Pres. Obama and THAT'S why the Fed Resv. continues to print $85 billion monthly ($1 trillion annually) in new money.

The liberal-socialists have a severe disconnect to REALITY because they only view the economy through a skewed prism of bi-polar ideology - NOT economics.

4shizzle

hot air

Contango

"Gold Up to 10-Day High on Weak Dollar, Physical Buying":

http://www.cnbc.com/id/100670756

"That is the entire purpose of gold – the hedge against government – not inflation."

http://armstrongeconomics.com/ar...

4shizzle

Read your links clowntango

kURTje

Using contakerous logic then all southern people owe all Northern people $$ for causing the Civil War/Income tax/ GOP. Not to mention US paying for migrant help "cause" landed gentry wants cheap labour. Opps forgot..we pay for their medical also. btw those migrants work very hard - no disrespect meant towards them either. All came here for a better life...unless you are a Red man.

arnmcrmn

Say it ain't so. The Rich are getting richer well into Obamas administration? Say whatttttt........can't blame Bush on this one. Lol.

arnmcrmn

Capitalism is only liked by self motivated go getters. I work harder and longer and do good at my job, I make more, get more patients, and have more to spend. I buy more things, that keeps others at work. Capitalism is hated by the self loathing lazy class of people who want somebody else to take care of them. That is the bottom line, no way to spin that one suckas.

TrollingRageind...

And that self loathing lazy class beg for free stuff. You can give and give and give to them, but they still aren't happy, they never will be. America is headed to totalitarianism and these idiots just keep begging for more free stuff instead of trying to contribute to society. They vote for Obama, or whatever republican or democrat will give them free stuff. They blame it on the politicians even though they are the ones that vote them in.

Really are you ...

Republican, democrat, liberal, rich, poor, socialist, capitalist... Really? Really? Really? All of this hate and bickering about who is right or wrong. This is the land of opportunity, we are all free to do as we wish, to an extent anyways. What about a Utopian Society where everything is perfect or the way it is suppose to be everywhere you go. Everyone would have to carry their own weight. Instead of criticizing and ridiculing one another, help and encourage one anther to better one another. Once you leave this life, what will you have left for generations to come to deal with? An inherited drug addiction? An outrageous National Debt? A family fortune? A family business? Debt? Just a last name? Kudos to the people who have built massive wealth. Future generations will say how did , and who made this all happen? And their parents will say back in the late 1900's and early 2000's your great (great...) grandfather or grandmother did this and now you don't have to worry about this ever again.

arnmcrmn

You just said something very important "This is the land of opportunity, we are all free to do as we wish, to an extent anyways". Capitalism is freedom. Freedom to build whatever empire you want and become wealthy off of the risks you take and make. I think what a lot of people also forget is that many of these so called "rich" people are supporting this nation. They are the blood line for federal and state taxation. They also donate and give give give x10000000 times more than most.

Ill never be jealous of someone who built a business and became rich off of it. Steve Jobs, Bill Gates.....etc. THAT IS WHAT AMERICA IS ALL ABOUT.

If you don't want it bad enough, then you only have yourself to blame. Many are happy making what they make. Wealth is not judged by how much money you have in most eyes.

There are like 4 people on this site that continuously bash anything capitalistic, wealth driven....etc. They are the ones that want people to give them their opportunity rather than create it on their own. Sad and pathetic.

kURTje

Plagiarism. Never created. Never walked independent. Hates freedom & self-made individuals....so pedestrian. Blo-on.

8ballinthesidepocket

This article is true. I am rich and am getting richer every day because I work hard, invest in a conservative manner and have a tax accountant that makes sure I do not pay any more taxes than our former treasury secretary and our congress people like Charlie Rangel. Look into the statistics. If you take out the people who chose not to go to school, or had babies and keep having babies in their teen years, you get a much different picture. Oh I know, it's hard for those girls to keep their legs closed, but then, why should I have to support this kind of behavior? Those that are left behind, made poor decisions, but then I suppose that is my fault, must be because I pay for these fools to keep repeating their same mistakes.

swiss cheese kat's picture
swiss cheese kat

Under Obama, the rich get richer, the poor get poorer. The president is nothing more than a corporate sock puppet and he gives money to moochers in order to buy their blind allegiance. Moochers are at an all-time high thanks to the golfer-in-chief.

S w Rand 2016

A summary of my comments on this article would read as follows:

- Bush and Obama, while they have thrown it into overdrive, did not cause this ongoing financial crisis by themselves. Malinvestment https://www.youtube.com/watch?v=... coupled with currency devaluation http://www.youtube.com/watch?v=L... has done this. We need a 2016 candidate who, not only understands this but, has publicly acknowledged and spoken about this. I don't see how we could trust the opposite. It hasn't worked with Bush OR Obama, has it?

- While it is true that "old guard" Republicans have had a hand in this, I would suggest that the Democrat party's leaders had the greater hand in it. They've always had the motive (favoring Big Government over small government) and recently, from the start of 2007 unto the start of 2011, they had the means (control of Congress and most of the mainstream media spamming us with their party's talking points) to deal a significant blow in the interest of their cause.
Consider the fact that, under President Obama, the mega-corporations are doing well enough while the small businesses are in danger of being wiped out. The Democrat party's leaders know they have to be good bedfellows with mega-corporations to achieve their Big Government vision, as they cannot bite the hand that equips them.

- Because of the above, I suggest that our current hope should be in the new generation of younger Republicans and, particularly, Senator Rand Paul. This will be the first chance we've ever had to elect a populist candidate who would also be an effective President. By effective, I mean that he seeks to govern from the center and is able to bring the parties together (on social issues as well as fiscal) instead of driving them into a frenzy against one another.
The viability of his proposals, as Senator, is impossible to dispute.

S w Rand 2016

I would also challenge any commenter to raise an objection to my advocacy of Senator Rand Paul for President. Please detail any policy proposal/s the senator has made with which you take issue, explaining in what way you take issue, and I will be happy to clear up any misconceptions you may have had :)
As the topic of this article is economics, I will preemptively point out the fact that he has already submitted a budget proposal which balances the budget in 5 years without hurting Social Security and Medicare (while President Obama is offering up cuts to both of those programs with no plan to EVER see a balanced budget again). This, alone, is testament to Senator Rand Paul's viability on economic matters.

http://www.youtube.com/SenatorRa... for President 2016

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