Showing posts with label Income Distribution. Show all posts
Showing posts with label Income Distribution. Show all posts

7.26.2014

5 Years of Obama ... the Middle Class has LOST wealth




The Typical Household, Now Worth a Third Less

Excerpt:

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.
Comment: Link in article above it to full PDF of the study. Images are snips from the study. Why? [My view which is not from the study]: 1. The economy has stagnated; 2. Wages have not grown even to the rate of inflation; 3. Employment has not rebounded; 4. Obamacare milks more from the middle class than it returns;

10.18.2011

Who are the 1 percenters?

Who are the 1 percent?

Excerpt:

the top 1 percent of American households had a minimum income of $516,633 in 2010 — a figure that includes wages, government transfers and money from capital gains, dividends and other investment income.

That number is down from peak of $646,195 in 2007, before the economic crisis hit, all adjusted to 2011 dollars, according to calculations by the Tax Policy Center. By contrast, the bottom 60 percent earned a maximum of $59,154 in 2010, the bottom 40 percent earned a max of $33,870, while the bottom 20 percent earned just $16,961 at maximum. As Annie Lowrey points out, that gap has grown wider over time: “The top 1 percent of households took a bigger share of overall income in 2007 than they did at any time since 1928.” (And in New York City, it’s even more skewed: the top 1 percent have an average of $3.7 million in income.)

...

By contrast, the poorest households were experiencing declines in net worth even before the recession hit. In 2007, the bottom 20 percent of households had an average (negative!) net worth of –$13,800 in 2007, which fell further to –$27,200 in 2009. Altogether, “average wealth of the bottom 80 percent was just $62,900 in 2009 — a dropoff of $40,900 from 2007,” EPI writes. That means the wealthiest 1 percent held an average of 225 times the wealth of the average median household in 2009 — a ratio that was 125 in 1962.

Interestingly, just as Occupy Wall Street is bringing their grievances about this growing gap to a broader public, the Democratic Party is re-adjusting it’s definition of “rich.” As my colleague Lori Montgomery reports, Senate Democrats have ditched President Obama’s plan to raise taxes on households who have more than $250,000 a year for a proposal to tax those who earn more than $1 million a year. Those who have a household income of $250,000 wouldn’t fall in the top 1 percent. But those who have incomes of more than $1 million would — at least outside New York City.


Where Do You Rank as a Taxpayer?

Excerpt:

One percent of taxpayers reported almost 17% of all taxable income. But that same tiny group also kicked in 37% of all the taxes paid. How much do you need to make to be in the top 50% of earners? Just $32,396.

Comment: Calculate where your income ranks: How Your Income Stacks Up. The ultra-rich are easy targets. We (I'm not near there) seem to think they should always pay more! Brings to mind the famous Adrian Rogers quote:

Financial Quote from Adrian Rogers

Friend, you cannot legislate the poor into freedom by legislating the wealthy out of freedom. And what one person receives without working for, another person must work for without receiving. The government can’t give to anybody anything that the government does not first take from somebody. And when half of the people get the idea they don’t have to work because the other half’s going to take care of them, and when the other half get the idea it does no good to work because somebody’s going to get what I work for. That, dear friend, is about the end of any nation.”