Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

7/27/2014 (5 months 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 (5 months 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.

---


Pope Francis: end world hunger through 'Prayer and Action'


2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for January 2015
General Intention:
That those from diverse religious traditions and all people of good will may work together for peace.
Missionary Intention: That in this year dedicated to consecrated life, religious men and women may rediscover the joy of following Christ and strive to serve the poor with zeal.



Comments


More Business & Economics

An amazing 2,500 of the world's most prestigious people canvas Davos, Switzerland for this year's World Economic Forum Watch

Image of

By Abigail James (NEWS CONSORTIUM)

Around 1,700 private jets will cover the sky, as the most elite people of the world descend on the annual World Economic Forum in Davos, Switzerland. Throughout the next week, world leaders, wealthy businessmen and even influential pop stars will come together to speak ... continue reading


Do they have your best interests at heart? A shocking 50 PERCENT of the global wealth precariously belongs to only ONE PERCENT of the world's population Watch

Image of Nearly 50 percent of the world's entire riches belong to only one percent of its people.

By Abigail James (NEWS CONSORTIUM)

Davos men, the world's most elite billionaires and politicians, gather at the World Economic Forum to once again attempt to tackle inequality between the rich and poor as the disparity continues to grow. LOS ANGELES, CA (Catholic Online) - Every year the world's ... continue reading


Downturn of low gas prices: Schlumberger to cut 9,000 jobs due to decline at pump prices Watch

Image of The precipitous fall of $1.8 billion came in a series of one-time charges related to the steep fall in commodity prices.

By Catholic Online (NEWS CONSORTIUM)

There is a downside to the plunging prices at the gas pump: Americans will be losing jobs as companies struggle to make up the difference in falling revenue. Case in point: Schlumberger is cutting 9,000 jobs due to low oil prices. Other petroleum companies are ... continue reading


Improved economy? Study says labor force participation at 36-Year Low Watch

Image of The labor force participation rate is defined as the percentage of the civilian non-institutional population who either had a job or was actively seeking one during the month.

By Catholic Online (NEWS CONSORTIUM)

Gas prices may be cheaper, consumer confidence may be higher - but that does not take away from the brutal fact that many Americans remain jobless. A record 92,898,000 Americans 16 and older did not participate in the labor force in December, as the labor force ... continue reading


The Rise and Fall of the World's Poorest Nations Watch

Image of Leaving list of LDCs entials that of productive capacity development, structural transformation resilience building and sustainable improvement in human and social capital.

By Thalif Deen, Inter Press Service

The world's 48 Least Developed Countries (LDCs) - a special category of developing nations created by the General Assembly in 1971 but refused recognition by the World Bank - have long been described as "poorest of the poor" in need of special international ... continue reading


Is pot the future boom business? The founder of Pay Pal thinks so Watch

Image of The co-founder and former CEO of PayPal, Peter Thiel is investing multiple millions of dollars into Privateer Holdings, a Seattle-based marijuana growing, production, distribution and information company.

By Matt Waterson (NEWS CONSORTIUM)

Founders Fund, a $2 billion dollar, San Francisco-based venture capitalist firm ran by the co-founder and former CEO of PayPal is moving in a new investment direction, turning towards pastures a little greener than former tech and Silicon Valley ... continue reading


Here is the top 10 list of the world's most widely used currencies. Numbers 9 and 10 surprised us! (PHOTOS) Watch

Image of The list of most widely used currencies will surprise you. Confederate money was once sold in bundles to kids for use as play money.

By Catholic Online (NEWS CONSORTIUM)

You might not be surprised to learn that the U.S. dollar is one of the world's most widely used currencies, but there are other less-familiar currencies used around the globe. The list of the top 10 might surprise you. We were surprised to see the last two currencies ... continue reading


Crossings Tea releases unique Chinese tea

Image of Crossings Tea, grown in the remote heartland of China.

By John W. Smagula

Crossings Tea announces the release of its Chinese black, green, and jasmine tea. From the remote Three Gorges region of Central China, Crossings Tea has pure and refined flavors that capture the essence of classical Chinese tea. The company supports the local Yichang ... continue reading


OPEC price war increases; Brent Oil hits new low Watch

Image of Crude prices have plunged since the Organization of Petroleum Exporting Countries, or OPEC agreed this November to leave its production quotas unchanged at 30 million per day.

By Catholic Online (NEWS CONSORTIUM)

Hard as it may seem, not everyone is welcoming low prices at the gas pump. Brent crude plunged below $57 per barrel this week. The event marked a new five-and-a-half-year low while traders wager that the global oversupply of oil will continue deep into 2015. ... continue reading


In a bid to 'get rid of gasoline' Toyota makes history with first hydrogen-powered retail car - Coming to a dealer near you in 2015! Watch

Image of The Myrai will be the first hydrogen fuel cell-powered car you can buy, starting in 2015.

By Catholic Online (NEWS CONSORTIUM)

Toyota is making automotive history by selling a car powered by hydrogen. Sales in Japan began on Dec. 15, and will begin in the USA in 2015. Running off electricity created by hydrogen fuel cells and emitting only water, the car could revolutionize driving as well as ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

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

Daily Readings

Reading 1, Jonah 3:1-5, 10
1 The word of Yahweh was addressed to Jonah a second ... Read More

Psalm, Psalms 25:4-5, 6-7, 8-9
4 DIRECT me in your ways, Yahweh, and teach me your ... Read More

Gospel, Mark 1:14-20
14 After John had been arrested, Jesus went into ... Read More

Reading 2, First Corinthians 7:29-31
29 What I mean, brothers, is that the time has become ... Read More

Saint of the Day

Saint of the Day for January 25th, 2015 Image

St. Peter Thomas
January 25: Carmelite Latinpatriarch and papal legate. Peter was born in ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter