Skip to content

The poor getting power in U.S. - typical household is now worth a third less

By Catholic Online (NEWS CONSORTIUM)
7/27/2014 (3 years ago)
Catholic Online (www.catholic.org)

Majority of damage occurred since the start of the last recession in 2007

The rich get richer - and the poor have children. But seriously, folks, the poor is getting even poorer in the United States. Recovery from the last big recession in 2007, hasn't really taken off as of yet. Recent studies show that the average American households is now worth a third less than it used to be - talk about economic inequity!

The old saw goes that when only a few people are winning and more than half the population is losing, surely something is amiss.

The old saw goes that when only a few people are winning and more than half the population is losing, surely something is amiss.

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (www.catholic.org)
7/27/2014 (3 years ago)

Published in Business & Economics

Keywords: Economic inequity, recession, net worth


LOS ANGELES, CA (Catholic Online) - A recent study found that inflation-adjusted net worth for the typical household was $87,992 in 2003. Ten years later, it was only $56,335, a substantial 36 percent decline. According to a study financed by the Russell Sage Foundation, these figures are for households at the median point in the wealth distribution, which is the level at which there are an equal number of households whose worth is higher and lower. But the rich did indeed get richer -- during this same period, the net worth of wealthy households increased substantially.

The Russell Sage study also examined net worth at the 95th percentile. For households at that level, 94 percent of the population had less wealth and 4 percent had more.

Emergency Fund - SAVE Iraqi Christians from Genocide

The study found that for this well-do-do slice of the population, household net worth increased 14 percent over the same 10 years. Economists like Edward Wolff at New York University, has shown even greater gains in wealth for the richest one percent of households.

Therefore, households at the median level of net worth, much of the damage has occurred since the start of the last recession in 2007.

Previously, net worth had been rising for the typical household, although at a slower pace than for households in higher wealth brackets. But much of the gain for many typical households came from the rising value of their homes. Exclude that housing wealth and the picture is worse: Median net worth began to decline even earlier.

"The housing bubble basically hid a trend of declining financial wealth at the median that began in 2001," Fabian T. Pfeffer, the University of Michigan professor says. Pfeffer was the lead author of the Russell Sage Foundation study.

The reasons for these declines are complex and controversial. The old saw goes that when only a few people are winning and more than half the population is losing, surely something is amiss.

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for OCTOBER 2017
Workers and the Unemployed.
That all workers may receive respect and protection of their rights, and that the unemployed may receive the opportunity to contribute to the common good.


Comments


More Business & Economics

Is now the time to sell? Experts say Wall Street is on a bubble, here's why Watch

Image of Stocks appear to be on a bubble according to many experts.

Is now the time to sell on Wall Street? Stocks are on a bubble, according to multiple analysis and expert opinions. Fundamental market ... continue reading


Forget Winter, Recession is Coming Watch

Image of Major indicators reveal recession is coming.

The economy is about to go into recession according to several Wall Street firms. They are warning investors to prepare for an end to the ... continue reading


Get ready for self checkout everywhere: 3.5 million retail cashiers are about to be replaced by automation Watch

Image of Retail cashiers often loathe self checkout stands. However, both cashiers and self checkout stands are facing replacement as new technologies threaten to eliminate the checkout process.

Automation is coming soon to a store near you as retailers look for ways to cut costs and improve profits. The best way to accomplish this ... continue reading


'Budgets are moral documents'

Image of

The highly relevant quote, "Budgets are moral documents," has been arguably attributed to Rev. Martin Luther King, Jr. But if he didn't ... continue reading


Central bankers warn of looming global recession Watch

Image of A recession could be lurking around the corner and central banks have been asked to take note, especially in Asia.

A group of central bankers has warned that a great recession, possibly larger than the 2007-2008 recession is looming on a global scale. ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Information
Learn about Catholic world

Catholic Online
Inform - Inspire - Ignite

Catholic Online Saints
Your saints explained

Catholic Online Prayers
Prayers for every need

Catholic Online Bible
Complete bible online

Catholic Online News
Your news Catholic eye

Daily Reading
Today's bible reading

Lent / Easter
Death & resurrection of Jesus

Advent / Christmas
Birth of Jesus

Rest of Catholic Online
All Catholic world we offer

Services
Products and services we offer

Catholic Online Shopping
Catholic medals, gifts & books

The California Network
Inspiring streaming service

Advertise on Catholic Online
Your ads on catholic.org

Catholic Online Email
Email with Catholic feel

Catholic Online Singles
Safe, secure Catholic dating

The California Studios
World-class post production service

Education
Learn the Catholic way

Catholic Online School
Free Catholic education for all

Student Classes
K-12 & Adult Education Classes

Catholic Online MasterClass
Learn from experts

School Teachers
Teacher lesson plans & resources

Catholic Media Missionaries
The New Evangelization

Support Free Education
Tax deductible support Free education

Socials
Connect with us online

Catholic Online on Facebook
Catholic social network

Catholic Online on Twitter
Catholic Tweets

Catholic Online on YouTube
Enjoy our videos

Catholic Online on Instagram
Shared Catholic moments

Catholic Online on Pinterest
Catholic ideas style inspiration

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.