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

Kimo

"Recovery" ?

Contango

@ Kimo:

Where are you gettin' any ROI?

I've been dollar cost avg. into (EFT) - check it out.

http://finance.yahoo.com/q?s=eft...

IMO, ya need to look at some alternatives.

Licorice Schtick

Early on, Wall Street was calling it a "jobless recovery."

Recovery for them.

THEY DON'T CARE about the rest of us. And they don't just whine if you want them to pay their fair share of taxes - they pay off congress and state legislators with "campaign contributions," all nice and legal-like, to keep pushing the tax burden down to the middle and lador classes.

Like Kasich's sales tax increase.

Raoul Duke

Of course they did. The swine always have mud to roll in.

Contango

"A Rise in Wealth for the Wealthy; Declines for the Lower 93%

An Uneven Recovery, 2009-2011":

http://www.pewsocialtrends.org/2...

Thank the "Bernank's" policies of QE and ZIRP which is helping to push up the price of riskier assets.

If the U.S. economy was REALLY healthy, do you really think that the Fed. Resv. would be buyin' $85 billion monthly ($1 trillion annually) in Treasuries and mortgage-backed (Fannie and Freddie) securities?

I'm betting that Mr. Bernanke takes an exit in 2014. He doesn't want the next financial crash to occur on his watch.

Really are you ...

Now this article, however true it may be, is why our economy had tanked and is not recovering that much at all. How is someone buying stocks and other financial holdings actually increasing the United States Gross Domestic Product? It does not consist of any physical productive value strengthening or rebuilding our economy on their part. They are creating their money piggy-backing off of someone else's sweat labor. They should start up a piggy-backing tax and modify NAFTA. NAFTA needs to be changed from free trade to fair trade, otherwise we are only strangling ourselves.

Contango

Pretty simple:

No capital = no business = no jobs.

See: Cyprus, Greece, et al.

Licorice Schtick

Pretty simple:

rising produtivity + give all those gains to the rich

= little demand for labor + growing underclass

Contango

Licorice Schtick writes:

"rising produtivity + give all those gains to the rich"

What the h*ll is "produtivity"? :)

Regardless, your "equation" is economic mishegas.

coasterfan

Hilarious! Contango agrees that the disparity between the haves and have nots - which are created and fostered by Republican economic policies - indeed does exist...

arnmcrmn

Obama is president. Rich gettin much richer under him. Go blame him for once.

shucks

Licorice Schtick 10
Clowntango 0

Really are you ...

.

Kimo

How many people in the gun business are in that 7% ????

Kimo

JobsOhio gave tax breaks to companies to add jobs. Those "jobs" are minimum wage jobs and the employees end up on Medicaid.

Wendys goi a $3.9 million tax break for "promising" to add 223 jobs.

Bob Evens got $5.5 million and has more than 5,000 employees on Medicaid.

Why do you think Kasich wants the federal money for Medicaid?
He gave away the farm and needs some way to CYA or in his case CMA.

Julie R.

Of course the rich get richer. It's the way the system is set up. Make the rich ~ including the lawyers ~ richer. It's present right here in Erie County.

Yesterday's paper told how the 6th Disrict Court of Appeals ruled that Cedar Fair must give Jack Falfas his job back, as well as giving him an estimated $2 million in back pay. Falfas's lawyer is Rich Panza, from the big prestigious Lorain County law firm of Wickens, Herza, Panza, Cooke & Batista Co. who merged with a small Sandusky law firm about 5 years ago. Cedar Fair's lawyer is a Murray.

Now notice how quick the Erie County courts were to address and resolve that case in a TIMELY MANNER --- yet they sure don't show that courtesy and respect to the average citizens. My mother passed away in 2002. After years of one illegal scam after another those jokes at the courthouse were STILL playing their unprofessional high-school thug games in 2011. STILL refusing to address legitimate complaints that were filed not to mention STILL sitting on the money from that illegal scam sheriff sale of property that they pulled off in 2007.

Of course the rich get richer. Sure don't see the Erie County courts pulling off their well-known legal abuse on the rich non-average citizens and their big-shot lawyers like they do the average citizens.

Fromthe419

The biggest reason the bottom 93 percent are not keeping up with the upper 7 percent goes all the way back to the early 70's when Nixon broke the Bretton Woods agreement and took the US off of the gold standard. Back then you had very little inflation and a very stable dollar. Once we became a fiat currency prices rose and there was no way to keep getting the kind of raises to keep up with inflation. In the 70's you could buy a new car and take a 36 month loan to pay it off, today you take a 60, 72 and even 84 month loans to buy a new car. The best way advice I have is to use the fiat currency daily, stop using debit and credit cards which the banks make billions of dollars off their use. Stop feeding the financial beast that is destroying the nation. Get out of debt and pay everything in cash, get your money out of the banks and put it somewhere else and stop the fractional reserved banking system that is expanding the money supply and devaluing the dollar everyday. Our government lies about the inflation rate, they do not include energy and food...the stuff you use everyday. Don't think what happened in Cyprus can not happen here, a precedent has been set.

Contango

@ Fromthe419:

"Fed Governor Stein Warns When A TBTF Bank Fails, Depositors Will Be Cyprus'ed":

http://www.zerohedge.com/news/20...

Dodd-Frank said: No more taxpayer funded bail-outs!

-------------------------------

Consider this:

In 1964, a Roosevelt dime could buy a loaf of bread.

In 2013, the "meltdown value" of a 1964 Roosevelt dime can still buy a loaf of bread.

A dime minted in 2013 has the purchasing power of ten cents.

http://seekingalpha.com/article/...

shucks

Rubbish, Fromthe419, read the article.

Fromthe419

4shizzle, I guess I didn't put in the part that I wanted to say. While us lower 93 percent are buried with debt for car payments, credit card payments, etc those that have money are investing in stocks and other assets. That is why I stated to get out of debt and not use credit cards for daily purchases. But I stand behind that fact that removing our currency from the gold standard and becoming a fiat currency began the downfall of the American way of life.

shucks

You've been listening to clowntango too much. Find a qualified, responsible expert.

http://screen.yahoo.com/12-misgu...

Fromthe419

Good info 4shizzle. Actually a lot of that video makes sense, but in defense of gold buyers it has never been worth nothing and fiat currencies have collapsed in modern history, ie Germany 1923 and Zimbabwe from 2008-2009. I worry that with all of the QE and huge national debt that at some point the dollar will lose it's world reserve status. I'm sure you can agree that the national debt is a problem and I ain't blaming Obama this started back after JFK was killed. Every President since Kennedy has doubled what his predecessor did. This really isn't a democrat or republican problem, it's a politician problem...both are equally to blame.

Contango

"Find a qualified, responsible expert."

Five day old info, off the web and has no investible assets.

Yea, follow that "commenter" and you'll get RICH! ROFLMAO!!!

shucks

Got gold ?

Centauri

Has anyone noticed how food has gone up in price and the weight of the food in containers has decreased. Take for example coffee which used to come in 3 pound cans (48 ounces) and down to 39 or 34 ounces and now down to 30.6 ounces. The inflation index is not accurate.

Don't allow the rich and powerful to start a new war based on lies. It sickens me to see young Americans go off to war as cannon fodder so that the rich can become richer.

deertracker

I have and it is not only with coffee. Lots of the same products you have always bought are now higher in price and the recipe has changed and the weight has decreased!

shucks

"Don't allow the rich and powerful to start a new war based on lies"

Start? It's been ongoing. It's called the GOP.

arnmcrmn

Obama is president. People are getting richer like never before. How ironic.

bullydogs1971

Gerald Celente talks about gold, China and is there a huge case of the "Stockholm Syndrome"?
http://www.youtube.com/watch?v=y...

bullydogs1971

Every week Max Keiser looks at all the scandal behind the financial news headlines.
http://rt.com/shows/keiser-repor...

Pages