Wealth Gap Grows As Household Net Worth Plummets
The U.S. wealth gap in what is being called the “lost decade” for middle-class Americans in the 2000′s, has soared while the median U.S. net worth for households has dived to $57,000 in 2010 from 73,000 in 1983, ecreditdaily.com reports.
The findings come from the gravitationally left, think-tank Economic Policy Institute, who recently released “The State of Working America, 12th Edition,” which looks to see where and why the middle class has immerged into the country’s economic abyss.
Economic policies, including U.S. policymakers’ failure to action, have weakened the chances of workers to benefit from the United States’ economic growth and has contributed to the widening wealth gap in the country, the report suggests.
According to the study, the median household net worth would be $119,000 ““had wealth grown equally across households.”
The report also provides a more historical analysis: the top one percent had 125 times the net worth of the median household 50 years ago, which then jumped to 288 times the middle class net worth in 2010.
The Pew Research Center released a report entitled “The Lost Decade of the Middle Class: Fewer, Poorer, Gloomier” in August, 2012 which reported the results of a survey conducted with 1,287 middle class adults.
Of those surveyed, 85 percent said it was more difficult to maintain a middle-class standard of living now than it was ten years ago. The study also reveals that the middle-class tier has decreased from 61 percent in 1971 to 51 percent in 2011.
The study continued to say:
“For the middle-income group, the “lost decade” of the 2000s has been even worse for wealth loss than for income loss. The median income of the middle-income tier fell 5%, but median wealth (assets minus debt) declined by 28%, to $93,150 from $129,582. During this period, the median wealth of the upper-income tier was essentially unchanged—it rose by 1%, to $574,788 from $569,905. Meantime, the wealth of the lower-income tier plunged by 45%, albeit from a much smaller base, to $10,151 from $18,421.”
Often, the middle-class is associated with the American Dream, but the deepening crevasse in the U.S. wealth gap has made voters uneasy and left them questioning what steps will be taken to fill the gap.
Tags : Economic inequality, Middle Class, United States, Wealth
Posted: September 11, 2012
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Sep 11, 2012
Who owns this outcomes. 1. Borrowers overcommiting to debt. 2. Contrived lending practices forcing loans to unqualified borrowers due to regulation requiring these lender practices by Congress since 1993, lead by Barney Frank and Chris Dodd. When will they be accountable?
Sep 11, 2012
Bill Clinton said we had an Expanding Middle Class in his Convention speech—What a big ass lier he has always been.
Sep 11, 2012
I blame free trade – because we don't have a free trade – they bring their stuff to us for free and we have to pay. Then we give corps.tax breaks to set up shop in 3rd world countries with no rules. How do compete with a person willing to take you job for pennies on the dollar?
Sep 12, 2012
CEO's can get obscene golden parachutes-where does that money come from? Wall street dicing and splicing almost Las Vegas style betting of investments, etc. etc. etc. with little regulation or conscience. Free trade. And the middle class not being realistic about what they can afford.Using credit cards to into an identity.Outsourcing of jobs and then losing one's job and trying to maintain an identity on more credit. Credit cards are not money one has, but what one has to pay back and at interest in most cases. House Hunters is truly a scary show. Buyers are told that they can qualify for such an such a home based on their incomes. If their income stops -then what? I think we are all being forced to face new realities.
Sep 12, 2012
We need to assess the culture in this country. there is a growing culture of immediate gratification…and also the idea of "i want it so I should have it". unfortunately fewer are willing to make the same sacrifices in lifestyle necessary to get from point a to point b in life that previous generations did.
Sep 12, 2012
100%. And the politicians who are supposed to police this kind of thing, and look out for the American public, and way of life are bought, and paid for by the 1% who profit from this type of trade. Unless the rest of the country figures this out, we're doomed to an ever decreasing standard of living until WE are the 3rd world country.
Sep 12, 2012
The biggest problem to our wealth gap, is the lack of unity among US citizens. As long as we are 300 million single voices, instead of 1 voice, 300 million strong, then the ultra rich win. Further more, when they essentially bankrupt this country, they can move to another that will happily accept the wealth they bring with them. Then we can blame the politicians, like we always do. No one wants to take responsibility for a dilemna that we've all created, so we sit at our computers and cry and point fingers at everybody else. When will we be grown up enough to accept the blame for the mess we're in. When will we stop screaming accountability, when we're the ones who should hold them accountable? WE, are 99% strong when WE stand as one. Not a moment before.
Sep 12, 2012
*TrickleDown is an hullicinagenic POISON* – 1983 TO 2010 = 33 YEARS – - For 25 of those 33 YEARS The Peoples REPRESENTATIVE – AKA= The PRESIDENT OF THE UNITED STATES was a member of The RIPUBLICAN PARTY – AND I DOOO MEAN PARTEEEE!
Sep 12, 2012
Forcing loans to unqualified borrowers? Unqualified yes, forcing no! You need to stop watching fox lies and learn to think for yourself. Bundling mortgage backed securities and selling them like hotcakes on the open market is what drew banks into predatory hunting for new home buyers. It wasn't poor people who couldn't afford the loans, it was all Americans… Just look at the top 20 counties in America that had the highest foreclosure rates. Go ahead right now; look it up. They are all the wealthiest counties in America. Virginia, Maryland, New Jersey, Colorado, Florida, Nevada, these are the states that were giving out 80/20 loans to people buying homes worth 400,000 dollars and more! The Dod Frank bill of which you speak helped poor people who were paying rent and had no ability to save for a down payment, so they gave them credit based upon paying rent for 24 straight months without missing as an equalizer to a down payment. This allowed poor people to buy homes in the range of 50,000 to 120,000 dollars. Banks exploited this law, and said, why don't we use this law for the middle class and hell rich people too. This opened the flood gates and AIG and others were making a fortune and never looked back, until… 2008! Don't buy the "It was poor people who couldn't afford homes" babble that caused the economic calamity of the entire globe. You can't be so dumb.
Sep 12, 2012
I did write a comment, an excellent one but it did not go through. There must be control in this network. "Control is not freedom." Pamela Bunting Lewis September 12, 2012.
Sep 12, 2012
1983 to 2010 is 33 years? What the hell kind of math is that?
Sep 12, 2012
BTW= Here's a SCREAMOUT to *Ross Perot* – thanks for '92 " – you went hard before you went south but you gave US BigBoyBILLY .. PS= in 2011 a newly discovered Dinosaur was named in your honor- "PachyRHINOsaurus PEROTorum" – it's got a head like a plow and a horn like a trumpet . You didn't beat TheDevil – but you tried -
Sep 12, 2012
BTW= Here's a SCREAMOUT to *Ross Perot* – thanks for '92 " – you went hard before you went south but you gave US BigBoyBILLY .. PS= in 2011 a newly discovered Dinosaur was named in your honor- "PachyRHINOsaurus PEROTorum" – it's got a head like a plow and a horn like a trumpet . You didn't beat TheDevil – but you tried -
Sep 12, 2012
close enough – - the point is made – [ just checkin' if anyone watchin' ]
Sep 12, 2012
How can I take anything you say seriously when you can't do simple math!?? Hahahaha
Sep 12, 2012
how can i take you seriously in your vision is so superfishill – Oh wait , i know – on the sorce OR on merits -
Sep 12, 2012
[ excuse my edge - i think i read your ha ha's wrong - ]