Rich got richer during the recovery, and rest got poorer

[two-blocked]

Rich got richer during the recovery, and rest got poorer, study says
 
The nation’s richest American households generally gained wealth during the first two years of the economic recovery, a new research report finds, while most American households saw their net worth drop.
 
The report, released Tuesday by the Pew Research Center, found that the mean net worth for the 7 percent of American households at the top of the wealth distribution rose by 28 percent between 2009 and 2011, the most recent [size=100%]data[/size] available.
 
Meanwhile, the mean net worth for the other 93 percent of American households fell by 4 percent during that period, according to Pew’s analysis of Census data.
 
Overall, the aggregate net worth for all American households rose between 2009 and 2011. But Pew’s more detailed analysis showed that the gains were concentrated among the wealthiest Americans, and the wealth gap increased during that time.
    Economists say that’s a continuation of a trend toward more wealth being found at the top of the income scale.
 
“There’s been a growing concentration of wealth in this country for quite a while now, and it’s just really accelerated in the last, really, 15 years,” said Joel Naroff, chief economist with Naroff Economic Advisors, who was not involved in the Pew study.
 
The Great Recession officially ran from December of 2007 to June of 2009, but the recovery since that time has been weak and uneven.
 
The Pew researchers said rallies in stocks and bonds, which benefited affluent households with major [/size][size=100%]investments[/size], largely drove the discrepancy in wealth gains during those two years.
 
The housing market, where many other Americans derive a lot of their wealth, did not do that well during that period.
 
The Pew researchers said they focused on the top 7 percent of the wealth distribution because that was the tabulation available from the Census data. The report found that the mean net wealth for those 8 million households rose to around $3.17 million in 2011, from approximately $2.48 million in 2009.
 
For the other approximately 111 million households, mean net worth fell to nearly $134,000 in 2011, from nearly $140,000 in 2009.
 
The report’s authors note that some less-wealthy American households no doubt saw wealth gains during the period. In general, however, more of the households in that 93 percent saw their wealth fall rather than rise.
 
Naroff noted that income distribution is always shifting in one way or another, but the wealth gap has grown especially wide in recent years. That could pose problems for an economy that is largely driven by consumer spending.
 
“We haven’t seen it at least in 100 years as heavily distributed to the upper income side as we’re seeing now, and we don’t know whether that pattern is readily reversed,” he said. “And if it’s not reversed what happens to the economy that’s built on a consumer base? That’s the uncertainty that we have.”
 
http://lifeinc.today.com/_news/2013/04/23/17880268-rich-got-richer-during-the-recovery-and-rest-got-poorer-study-says?lite&ocid=msnhp&pos=3

[DDZ]

Actually my net worth has increased in recent years, and I'm by no means rich. I could probably say the same for everyone I work with. Do you think it might have something to do with people spending money they don't have? You know, kind of like government does. 

[Oldshooter]

There has been a recovery? I didn't get the memo!  AS soon as I took what was left of my retirement out of the stockmarket and mutual funds my networth started to increase.
 
You mean barrys constituants arent prospering under his careful manipulation of our economy,    

[gypsyman]

I can agree with that statement 2 Blocked. More people on welfare,food stamps, and unemployment since Obiewan got elected, than any other time in American history. 'Course, many more illegals now too, plus single mothers with muliple kids by different fathers, yea, pretty much agree with it. I guess the people that actually work, just keep plugging along. Guess that's the way it is. At least for the short term. gypsyman

[jimster]

I agree two-blocked....not only did the poor get poorer...but more people got poorer as well.
 
So...now that we all agree on that, time to change the way you vote? Obviously extream left wing socialism is not working and making things much worse, add to that no leadership at all and the world suffers as well.
By the way...you used the word recovery in your thread title...there has been no recovery, we know this now that we have the numbers are out for all to see...welfare increased 31% under this president and congress...not to mention the real unemployment numbers are huge, but will not be reported. Recovery means something got better, but things got worse actually.
 

[Anna]

Wages went down or are pretty well stagnate . Work for this kind of money under these conditions
or there is a line of green cards who will . Everything is more expensive and still on the rise.
People don't rent out their houses anymore they rent out rooms in those houses to get by .
Auto parts store are booming , people are fixing what they already have instead of buying new .
Luxury foods sit on the shelves until they rot , the burrito has become a staple food source now .
16 year old school kids are looking for part time work not for themselves now . But to help their
parents survive with combined incomes .
Yea things out here are getting so much better under Obama !
 

[guzzijohn]

Quote from Anna:
"Auto parts store are booming , people are fixing what they already have instead of buying new ."


Edmonds disagrees with you:


Automotive information provider Edmunds.com raised its full-year sales forecast to 15.5 million units, up from 15 million in its last adjustment in September. The subprime mortgage meltdown sent auto sales plummeting to nearly 10 million in full-year sales in 2009, down from nearly 17 million in 2005.
“Right now cars that carry people or carry things are doing very well,” said TrueCar.com senior analyst Jesse Toprak. “Last month we had some of the highest gas prices, but SUV and truck sales continued to climb. The rebounding housing market has a lot to do with it, but also simply a very high level of pent-up demand.”
Americans are spending more on their cars, too.
“Consumers spent over $31,000 on the average transaction price,” said Toprak. “That’s within a couple of hundred dollars of the all-time high.”
Simply put: Macroeconomic concerns and scary prognostics about growing U.S. debt and what to do about it is not keeping Americans out of showrooms.
GuzziJohn

[vabeachman]

What is rich?  Even the poor are rich nowadays compared to the 50s,60s.  AC, microwaves, cell phones.  Homes are much larger now.  Multiple cars. cable/satellite.  Vehicles' are much more luxurious now.  Pretty much everyone is living more richly nowadays.

[Oldshooter]

Macroeconomic concerns and scary prognostics about growing U.S. debt and what to do about it is not keeping Americans out of showrooms.

My new Ford truck is a 2003, my wifes new Car is a 2004, We havent paid a note on a vehicle in 4 years. maybe why my net worth is not in the crapper.
 
Heck go buy you a new obamamobile, It aint no thang. OH and send more of your Money to congress to spend, their doing so well with it and all.
 
scary prognostics about growing U.S. debt  OH I shudda told you, Thats a big conservative right wing conspiracy thing, We're making all that up to make barry look bad cause he's black, we wouldn't want America to prosper and all while he is in office.    

[45-70.gov]

the smart/ rich ......   always get richer
the stupid/poor......always get poored


WHAT HAS THE RECOVERY GOT TO DO WITH IT ??


same thing happened when the economy crashed


what is your point ??

[two-blocked]

Point is we made a grievous mistake raising taxes on the top 2 percent.
Should have raised them on the top 7 percent!

[magooch]

Again--what recovery?

[Oldshooter]

we made a grievous mistake raising taxes on the top 2 percent.

That would be you and barry? Why dont you and barry just pay more taxes lead by example!

[45-70.gov]

should have cut  off un-employment  and welfare
then  americans can ''take jobs''  from illegals....that broke in to work


every  one  needs to pay...not just 47%  of the people

[gypsyman]

two-blocked, I think the only people not paying higher tax's, are the one that didn't pay in the first place. gypsyman

[DDZ]

Maybe the OP first needs to define poor, since most of us I'm sure has a different definition of what poor is. Don't really know for sure, but it appears to me that the majority of people today are living to higher standards than people did back in the 60's and 70's. I remember back in the 70's there were a good many cars on the road that today would be considered wrecks. You would see cars with bumpers falling off, fenders flapping, duct tape over holes, cars smoking like diesels. Today, in my area anyway you would be hard pressed to see a car on the road that looked anything like they did years ago.
Also back in the day, people didn't own 1000 dollar tv's, most families had one tv, and after the price of the tv it cost them nothing. Now people have 2 to 4 tv's along with monthly cable bill, and internet bill. People also have 200 dollar cell phones with a monthly bill. So I guess poor depends on what the standard of poor is. 

   

[45-70.gov]

Maybe the OP first needs to define poor, since most of us I'm sure has a different definition of what poor is. Don't really know for sure, but it appears to me that the majority of people today are living to higher standards than people did back in the 60's and 70's. I remember back in the 70's there were a good many cars on the road that today would be considered wrecks. You would see cars with bumpers falling off, fenders flapping, duct tape over holes, cars smoking like diesels. Today, in my area anyway you would be hard pressed to see a car on the road that looked anything like they did years ago.
Also back in the day, people didn't own 1000 dollar tv's, most families had one tv, and after the price of the tv it cost them nothing. Now people have 2 to 4 tv's along with monthly cable bill, and internet bill. People also have 200 dollar cell phones with a monthly bill. So I guess poor depends on what the standard of poor is. 

   

it is all perception
what  is the difference between  greed and ambition ??
that depends on how  envious you are
greed  is a word most often used  by those that are not happy in life

[Gary G]

It is true that the wealth disparity has increased between rich and poor. The middle class is taking the brunt of it. This always happens when the Federal Reserve is printing so much. The first ones to receive the money, the banks, the government, and government contractors, are the ones to profit and prosper while the wealth of ordinary people declines as the dollars in their possession loose purchasing power. You make more of something, each unit declines in value.

[Swampman]

There has been no recovery.

[mcwoodduck]

I argue a few things about the theory.
1) I do not see a recovery.  If you are looking at the unemployment rate as a sign of recovery you are neglecting the millions that have maxed out their unemployment and the ones that have figured out how to transition from unemployment to disability.
2) the stimulis that was supose to bring us out of the ressession and into a recovery was the president giving huge amounts of tax dollars to his friends, and supporters that were already rich.  How much of our tax dollars ened up in the pockets of the solindra Democrat supporters pockets?
3) As taxes increase on all levels it will only get worse and with fewer and fewer Disposable income $ the less will be produced and purchased.  Anyone with some $ cna get deals and cut the margins on products to keep cash flow going and able to pay employees and other bills. 
4) as disposable income goes down fewer and fewer wants will be filled.  Even if you have not lost anything, you are less willing to spend on wants just incase you need that $ to fill needs as things get worse. 
5) disposable income and wants are what has made our economy so great, as well as the ability to use the natural resources of our nation and the benefits of capitalism.  We have seen time and time again that a demand economy creates shortages. 
Glossey-
Needs - things you need to live (food, shelter, clothes, transportation, and fuel)
Disposable income - Any thing that is left over after all needs are met
Wants - items you want but do not need. 
Capitalism-  An economic system that most efficently uses natural recources, capital, and labor to produce the best goods at the lowest prices. 
Demand Economy -  Sets quaotas for products not demanded by the public but by a central planning system that does not fully utalize the natural resources, production and labor.  Ending in shortages and lack of new products and innovations.

[ChungDoQuan]

That definition of "capitalism" is confusing it with elements of logic, consumer protection, and regulation. Capitalism itself has no such moral compass. That definition of "demand economy" is simply made up, and simply incorrect. How can a "demand economy" set quotas for products NOT in demand?  Study some more.

[45-70.gov]

the moral compass of capitalism is in the hand of the consumer......not the white house

[mcwoodduck]

Chung,
Yes Capitalism is the most efficient way to produce goods, 
The public votes with their $ as to what they want.  And the best mouse trap will get the most amount of $.  As others see profits being made from the item you will see new companies entering the market.  As those profits are seen other investors will get into the market and finance ideas of the better mouse trap. 
As demand for the raw materials to make the better mouse traps goes up the cost of the raw materials too goes up and more will start supplying it employing more people.  As jobs increase so do wages and allow people to move and grow.  Paying more increases the disposable income and that generates more wants that people are willing to fill with their labor.  Look at companies like Ruger, Apple, and others where good ideas have created many new industries.  Ruger's 10/22 spawned hundreds of companies and products to make parts to trick it out.  Apple has spawned hundreds of new jobs creating stuff for the phones, computers, software and APPS. 
In a Demand economy it is usually the left overs of a Capital system where a central planning commitiee looks at the capital resources (factories) and figures out the what it can make using those factories.  in many cases some factories are converted as products are over lapping.  So as you have two plants making the same thing the quota for the one plant goes up and the other plant is then making something lacking in the economy.  Setting Quotas only leads to shortages as equipment is used 24 hours a day and maintenance is not done as often as it should.  If you look at the old Soviet System the consumer goods were all set by single producers, innovations were never made and the only research being done was in the military sector where compitition was encouraged to produce the best products.  In a demand economy Apple never would have been allowed, and then you never would have had any of the after market good ideas that spawned new companies and ideas. 

[ironglow]

  What recovery ?
     Anybody with a small modicum of sense realizes that the socialist/Marxist idea does not "spread the wealth", but rather "spreads the poverty"..
   So we are witnessing what your kind voted for..

[ironglow]

Chung,
Yes Capitalism is the most efficient way to produce goods, 
The public votes with their $ as to what they want.  And the best mouse trap will get the most amount of $.  As others see profits being made from the item you will see new companies entering the market.  As those profits are seen other investors will get into the market and finance ideas of the better mouse trap. 
As demand for the raw materials to make the better mouse traps goes up the cost of the raw materials too goes up and more will start supplying it employing more people.  As jobs increase so do wages and allow people to move and grow.  Paying more increases the disposable income and that generates more wants that people are willing to fill with their labor.  Look at companies like Ruger, Apple, and others where good ideas have created many new industries.  Ruger's 10/22 spawned hundreds of companies and products to make parts to trick it out.  Apple has spawned hundreds of new jobs creating stuff for the phones, computers, software and APPS. 
In a Demand economy it is usually the left overs of a Capital system where a central planning commitiee looks at the capital resources (factories) and figures out the what it can make using those factories.  in many cases some factories are converted as products are over lapping.  So as you have two plants making the same thing the quota for the one plant goes up and the other plant is then making something lacking in the economy.  Setting Quotas only leads to shortages as equipment is used 24 hours a day and maintenance is not done as often as it should.  If you look at the old Soviet System the consumer goods were all set by single producers, innovations were never made and the only research being done was in the military sector where compitition was encouraged to produce the best products.  In a demand economy Apple never would have been allowed, and then you never would have had any of the after market good ideas that spawned new companies and ideas.

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
 
  Great explanation mcwood..  But it is hard to believe an aware, grown man should need such an explanation. With such obvious experiential truth being so abundantly available, one would think such evidence would not be required.  Of course, I think that for the vast majority...it isn't..

[Oldshooter]

 

Great explanation mcwood..  But it is hard to believe an aware, grown man should need such an explanation. With such obvious experiential truth being so abundantly available, one would think such evidence would not be required.  Of course, I think that for the vast majority...it isn't..

Thanks IG . I was going to post something to that effect. Preaching capitalism to a grown communist is a waste of time.

[ironglow]

  THere is no "recovery" going on:
 
  The rich didn't get richer...we ALL just got poorer !

[mcwoodduck]

Unfortunatly if all of your firends tell you that capitalism is rigged, that it is unfair and only keeps the worker down and makes products that are unsafe, and are poison.  Not understanding that a company does not want to kill their customers.  Hard to get repeat sales with your first customers dead.  And most often the safeguards the government puts in place often allow the fraud and criminals to thrive as they think there is a safety net to stop them.  These same regulations create hurdles to stop new compmanies from starting that could or would create the products that these same people want.  Electric cars people can afford and not the toys of the self ritghous rich who drive an electric car and fly in private jets.  And not understanding that the power comes from fossil fuels and they are not riding a generator bike in the garage charging that $150,000 governement subsidized car.

[DDZ]

The greatest thing about a free market is, if there is a need or want for something. Someone is going to invent it, design it, produce it, and provide it for those that need it, or want it.

[ChungDoQuan]

The problem with the self-regulating market theory of capitalism is that it is either REactive rather than PROactive, or just plain false. (Y'all are right, I DON'T need a reread of the capitalist mythology.) Look at the automobile industry: seat belts, shatter proof glass, and air bags save lives. That is a fact. It is also a fact that the capitalist jerks that run the industry fought those things, on the grounds that their customers didn't WANT them, and their initial research, bases on customer questionaires, showed that they were not necessary. That was because the people who were involved in crashes where those items would have saved lives WERE DEAD. The rest of the public was largely unaware of the benefits of the safety equipment. Without regulation we would still have steel dash boards. Or, take a look at the tobacco industry--- decades passed before they even acknowledged there were health problems associated with their product. Do y'all seriously think big money capitalists give a rat's behind about the average American consumer? And, get a clue, a "demand economy" depends on a demand for products--- it's actually the system y'all seem to want. You all only have hearsay examples of what socialism actually is: it is NOT simply a failing capitalist system where management is just replaced with government appointees--- that is the only kind of socialism that has failed. Do y'all realize that if the oil companies  or the fracking industry were actually held liable for the environmental damage they do, fuel prices would be so high they would not be able to sell any? Ask the Navaho how they feel about strip mining. I'm all for people making a profit--- I just don't want them sluffing the loss off on me. Apparently that is something y'all mistakenly think you can live with...