Rich get richer as economy gets better; everyone else is worse off

Started by merithyn, April 23, 2013, 01:31:11 PM

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merithyn

QuoteChange in worth by household category

Link to table

A new study shows that wealth disparity has been accelerating in the two years since the recession ended. The study by the Pew Research Center underscored other data showing that the economic growth that has followed the Great Recession has benefited mainly those at the top. View the change in household worth from 2009 to 2011. Source: Pew Research Center tabulations of Survey of Income and Program Participation wealth data.


Well then...
Yesterday, upon the stair,
I met a man who wasn't there
He wasn't there again today
I wish, I wish he'd go away...


garbon

Of course, by that the rich consist of 13% of households in the US.

Also how far off is that most recent commenter who pointed out that a large part of many people's networth had been their homes whose worth then tanked?
"I've never been quite sure what the point of a eunuch is, if truth be told. It seems to me they're only men with the useful bits cut off."
I drank because I wanted to drown my sorrows, but now the damned things have learned to swim.

merithyn

Quote from: garbon on April 23, 2013, 01:39:38 PM
Of course, by that the rich consist of 13% of households in the US.

Also how far off is that most recent commenter who pointed out that a large part of many people's networth had been their homes whose worth then tanked?

I thought that all happened prior to 2009.
Yesterday, upon the stair,
I met a man who wasn't there
He wasn't there again today
I wish, I wish he'd go away...

garbon

Quote from: merithyn on April 23, 2013, 02:03:38 PM
Quote from: garbon on April 23, 2013, 01:39:38 PM
Of course, by that the rich consist of 13% of households in the US.

Also how far off is that most recent commenter who pointed out that a large part of many people's networth had been their homes whose worth then tanked?

I thought that all happened prior to 2009.

According to this, looks like we bottomed in 2011, though yes biggest decline was before '09.

http://www.fool.com/investing/general/2013/03/21/us-home-prices-rise-to-2009-levels.aspx
"I've never been quite sure what the point of a eunuch is, if truth be told. It seems to me they're only men with the useful bits cut off."
I drank because I wanted to drown my sorrows, but now the damned things have learned to swim.

merithyn

Quote from: garbon on April 23, 2013, 02:07:31 PM
Quote from: merithyn on April 23, 2013, 02:03:38 PM
Quote from: garbon on April 23, 2013, 01:39:38 PM
Of course, by that the rich consist of 13% of households in the US.

Also how far off is that most recent commenter who pointed out that a large part of many people's networth had been their homes whose worth then tanked?

I thought that all happened prior to 2009.

According to this, looks like we bottomed in 2011, though yes biggest decline was before '09.

http://www.fool.com/investing/general/2013/03/21/us-home-prices-rise-to-2009-levels.aspx

So while that may have been part if it, it certainly wasn't all of it. Something else is causing that disparity.
Yesterday, upon the stair,
I met a man who wasn't there
He wasn't there again today
I wish, I wish he'd go away...

garbon

Quote from: merithyn on April 23, 2013, 02:09:34 PM
Quote from: garbon on April 23, 2013, 02:07:31 PM
Quote from: merithyn on April 23, 2013, 02:03:38 PM
Quote from: garbon on April 23, 2013, 01:39:38 PM
Of course, by that the rich consist of 13% of households in the US.

Also how far off is that most recent commenter who pointed out that a large part of many people's networth had been their homes whose worth then tanked?

I thought that all happened prior to 2009.

According to this, looks like we bottomed in 2011, though yes biggest decline was before '09.

http://www.fool.com/investing/general/2013/03/21/us-home-prices-rise-to-2009-levels.aspx

So while that may have been part if it, it certainly wasn't all of it. Something else is causing that disparity.

Here's another article. This one does blame a large portion of it on housing.

http://money.cnn.com/2012/06/11/news/economy/fed-family-net-worth/index.htm

Looks like it also points out falling incomes/rates of saving.

Fun Fed report in that link too.
"I've never been quite sure what the point of a eunuch is, if truth be told. It seems to me they're only men with the useful bits cut off."
I drank because I wanted to drown my sorrows, but now the damned things have learned to swim.

Baron von Schtinkenbutt

Quote from: garbon on April 23, 2013, 01:39:38 PM
Of course, by that the rich consist of 13% of households in the US.

Also how far off is that most recent commenter who pointed out that a large part of many people's networth had been their homes whose worth then tanked?

I agree that this chart is highly distorted by real estate values.  My mom, for instance, is in the second-highest bracket due to her house, but only makes about $30k/year as a head custodian for an elementary school.

That said, the 2009 column is after people's house net worth deflated.  The delta between the columns should include a slight rise in property value.

derspiess

Quote from: merithyn on April 23, 2013, 02:09:34 PM
Quote from: garbon on April 23, 2013, 02:07:31 PM
Quote from: merithyn on April 23, 2013, 02:03:38 PM
Quote from: garbon on April 23, 2013, 01:39:38 PM
Of course, by that the rich consist of 13% of households in the US.

Also how far off is that most recent commenter who pointed out that a large part of many people's networth had been their homes whose worth then tanked?

I thought that all happened prior to 2009.

According to this, looks like we bottomed in 2011, though yes biggest decline was before '09.

http://www.fool.com/investing/general/2013/03/21/us-home-prices-rise-to-2009-levels.aspx

So while that may have been part if it, it certainly wasn't all of it. Something else is causing that disparity.

WHITE FOLKS' GREED RUNS A WORLD IN NEED
"If you can play a guitar and harmonica at the same time, like Bob Dylan or Neil Young, you're a genius. But make that extra bit of effort and strap some cymbals to your knees, suddenly people want to get the hell away from you."  --Rich Hall

fhdz

Quote from: Admiral Yi on April 23, 2013, 01:38:45 PM
So people should save more.

There you go! Problem solved.

Unless of course you are already living paycheck to paycheck.
and the horse you rode in on

mongers

Quote from: fahdiz on April 23, 2013, 02:35:22 PM
Quote from: Admiral Yi on April 23, 2013, 01:38:45 PM
So people should save more.

There you go! Problem solved.

Unless of course you are already living paycheck to paycheck.

Pfft, come on that's just ridiculous, next you'll be telling us the majority of household sometimes face unexpected extra expenditures. Or that in a recession peoples circumstances can suddenly change.  :rolleyes:
"We have it in our power to begin the world over again"

Barrister

Quote from: merithyn on April 23, 2013, 02:09:34 PM
Quote from: garbon on April 23, 2013, 02:07:31 PM
Quote from: merithyn on April 23, 2013, 02:03:38 PM
Quote from: garbon on April 23, 2013, 01:39:38 PM
Of course, by that the rich consist of 13% of households in the US.

Also how far off is that most recent commenter who pointed out that a large part of many people's networth had been their homes whose worth then tanked?

I thought that all happened prior to 2009.

According to this, looks like we bottomed in 2011, though yes biggest decline was before '09.

http://www.fool.com/investing/general/2013/03/21/us-home-prices-rise-to-2009-levels.aspx

So while that may have been part if it, it certainly wasn't all of it. Something else is causing that disparity.

Debt.  With interest rates at historic lows consumers have been piling on debt.
Posts here are my own private opinions.  I do not speak for my employer.

Admiral Yi

Quote from: fahdiz on April 23, 2013, 02:35:22 PM
There you go! Problem solved.

Unless of course you are already living paycheck to paycheck.

Depends how you define the problem.  If you see the problem being that people with no disposable income aren't saving, as you point out there is no solution.  If the problem is that people with disposable income are experiencing a decrease in net assets, they should start saving more or borrowing less.

fhdz

Quote from: Admiral Yi on April 23, 2013, 02:51:36 PM
Quote from: fahdiz on April 23, 2013, 02:35:22 PM
There you go! Problem solved.

Unless of course you are already living paycheck to paycheck.

Depends how you define the problem.  If you see the problem being that people with no disposable income aren't saving, as you point out there is no solution.  If the problem is that people with disposable income are experiencing a decrease in net assets, they should start saving more or borrowing less.

Couldn't it be both problems?
and the horse you rode in on

MadImmortalMan

Quote from: fahdiz on April 23, 2013, 02:55:04 PM
Quote from: Admiral Yi on April 23, 2013, 02:51:36 PM
Quote from: fahdiz on April 23, 2013, 02:35:22 PM
There you go! Problem solved.

Unless of course you are already living paycheck to paycheck.

Depends how you define the problem.  If you see the problem being that people with no disposable income aren't saving, as you point out there is no solution.  If the problem is that people with disposable income are experiencing a decrease in net assets, they should start saving more or borrowing less.

Couldn't it be both problems?

Well, that and their assets have gone net negative.
"Stability is destabilizing." --Hyman Minsky

"Complacency can be a self-denying prophecy."
"We have nothing to fear but lack of fear itself." --Larry Summers