Wednesday, August 6, 2014

The Typical Household: Now Worth more then 1/3 Less (36%)

Short on time today so just this tidbit.  I call this stating the obvious. Too late.

The masses (95%) have lost one third of their wealth. The upper echelons have increased their wealth substantially in the same period of time. 14% on average. With the 1% benefiting even more! Which makes the case that the elites have indeed vaccumed up the wealth from the lower 99% .
Trickle down has always been nonsense. Vacuuming or suctioning the wealth of the general population has always been the reality.


Economic inequality in the United States has been receiving a lot of attention. But it’s not merely an issue of the rich getting richer. The typical American household has been getting poorer, too.
The inflation-adjusted net worth for the typical household was $87,992 in 2003. Ten years later, it was only $56,335, or a 36 percent decline, according to a study financed by the Russell Sage Foundation. Those are the figures for a household at the median point in the wealth distribution — the level at which there are an equal number of households whose worth is higher and lower. But during the same period, the net worth of wealthy households increased substantially.
The Russell Sage study also examined net worth at the 95th percentile. (For households at that level, 95 percent of the population had less wealth.) It found that for this well-do-do slice of the population, household net worth increased 14 percent over the same 10 years. Other research, by economists like Edward Wolff at New York University, has shown even greater gains in wealth for the richest 1 percent of households.
For households at the median level of net worth, much of the damage has occurred since the start of the last recession in 2007. Until then, net worth had been rising for the typical household, although at a slower pace than for households in higher wealth brackets. But much of the gain for many typical households came from the rising value of their homes. Exclude that housing wealth and the picture is worse: Median net worth began to decline even earlier.
“The housing bubble basically hid a trend of declining financial wealth at the median that began in 2001,” said Fabian T. Pfeffer, the University of Michigan professor who is lead author of the Russell Sage Foundation study.
The reasons for these declines are complex and controversial, but one point seems clear: When only a few people are winning and more than half the population is losing, surely something is amiss.
The housing bubble was created to suck wealth from the bottom. 
Every bubble is created for that very reason. Those that create the bubbles are fully aware of the outcome. It's never a surprise.

 

3 comments:

  1. They needed lots of voluntary conflict by the society at large to help hide the scam. Plenty of high paid CEO's committing economic apostacy glamoured up the spectacle.Finish up with a working class that allowed itself to be led by hereditary fools incapable of mathematic analysis. I am so glad, I did not receive a thorough education.

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    Replies
    1. I don't know how you define a 'thorough education'
      However, I am of the mind that education = indoctrination for the most part
      So, we may be on the same page
      Life is for learning and education does not end with 'schooling'

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