Pew Study: Wealth Gap Increased in “Recovery”…Significantly

 

Bail Out

April 23, 2013;Pew Research, “Social & Demographic Trends”

Between 2009 and 2011, the wealthiest 7% got wealthier by a big 28% and the rest of us got poorer by 4%. Let’s put it another way: The aggregate 8 million households in that top 7% saw their wealth rise by an estimated $5.6 trillion, while the 111 million households in the bottom group had their aggregate wealth fall by an estimated $600 billion. The wealth of America’s households over this period increased by $5 trillion, so there you go!

Have you got it, yet? Okay, once more: imagine a pie chart of the economy. It used to be that the wealthiest top 7% would have control over 56% of the pie; now, they have 63%.

We will leave the rest of this report for you to read, but the next time you wonder why you aren’t feeling the recovery yet, remember the visual below and get busy on economic reform.

Graphic

—Ruth McCambridge

  • Steven H Plourde

    Duh!

    The wealthy got wealthy by developing daily habits that the rest of us do not embrace. They achieve wealth in spite of the lunacy of the tax codes. Once they attain wealth, their fortune is immune from the stupid, regressive, oppressive income tax system which is not designed to distribute the tax burden equitably, but to punish the productive and prevent others from achieving a level of wealth enjoyed by the super-rich. We tax income, not wealth. The recent “recovery” programs have exacerbated the wealth gap by further punishing the productive – not the wealthy.
    The super wealthy can make large tax-free investments that yield 5% to 10% per year without income tax, while the rest of us can’t even get 1% from our saving bank WHICH IS TAXABLE!!! Go figure the income gap and the taxation inequality!
    Another case in point: GE made $15 billion in 2012 and did not pay a penny in income tax, partly because they did not repatriate significant earnings from overseas investments. Who figured out that kind of dumb taxation to be equitable?
    Yet – we keep electing the same bozos and bozettes to Congress so that they can perpetuate this type of taxation stupidity!

  • Alan Lidstone

    The Pew Research study released on 4/23/13 stated “During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%, according to a Pew Research Center analysis of newly released Census Bureau data.

    During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%, according to a Pew Research Center analysis of newly released Census Bureau data.”

    Not only did their share of wealth increase, the same study reported their aggregate share of the nation’s overall household wealth pie rose to 63% in 2011, up from 56% in 2009.

    I would be very surprised if an analysis of the 2011 -2013 period did not show additional similar increases in individual wealth accumulation and the aggregate share of the nation’s overall household wealth by the top 7% vs. the lower 93% of households..

    Could Messrs. Boehner, Ryan, Cantor, and McConnel explain to me again how the President is making life difficult for the top 1%, much less the top 7%, when their share of the nation’s wealth continues to show an ever-increasing share to those at the top while the individual share and aggregate share held by the working, middle class, and retirees in the lower 93% continue the decline that has been underway since the 1980s?