Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

7/27/2014 (11 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 (11 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'


Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for June 2015
Universal:
That immigrants and refugees may find welcome and respect in the countries to which they come.
Evangelization: That the personal encounter with Jesus may arouse in many young people the desire to offer their own lives in priesthood or consecrated life.


Rosaries, Crosses, Prayer Cards and more... by Catholic Shopping .com


Comments


More Business & Economics

Whole Foods accused of greatly overcharging customers Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

Whole Foods, the American foods supermarket chain that specializes in organic goods, has been accused of massive overcharging. The New York City Department of Consumer Affairs explained they have discovered "systematic overcharging for pre-packaged foods" at the city's ... continue reading


Strange and powerful 'boat swallowing' vortex appears in Lake Texoma Watch

Image of

By Nikky Andres (NEWS CONSORTIUM)

A strange, giant vortex, estimated to be around 8-feet in diameter, has appeared in Lake Texoma. This occurrence is surprising and perhaps threatening. However, there is an explanation. MUNTUNLUPA, PHILIPPINES (Catholic Online) - Lake Texoma is known as one of the ... continue reading


Is it time to stash money under mattress? 'It's time to hold physical cash,' fund manager says Watch

Image of Ian Spreadbury declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10.

By Catholic Online (NEWS CONSORTIUM)

Is it time to cash your paycheck and then stick it into a hatbox for a rainy day? According to British fund manager Ian Spreadbury, who invests more than £4 billion of investors' money is gravely concerned that a "systemic event" could rock markets. The upset ... continue reading


In spite of strong showing, Ron Paul predicts Apocalypse on Wall Street Watch

Image of Ron Paul has predicted economic doomsday previously. As stocks continue to make new highs, he remains just as convicted as ever that there

By Catholic Online (NEWS CONSORTIUM)

Things seem to be on an even keel right now but according to former Representative Ron Paul, the Federal Reserve's easy money policies have left stocks and bonds are on the verge of a massive collapse. LOS ANGELES, CA (Catholic Online) - "I am utterly amazed at ... continue reading


The U.S. public is asked - Which woman do YOU want to see on the new $10 bill? Watch

Image of The new $10 bill will also include a

By Catholic Online (NEWS CONSORTIUM)

It's a question being posed to the American public... which American woman do they want to see on the new $10 bill? The revamped $10 bill will go into effect in the year 2020. U.S. Treasury Secretary Jack Lew wants the next generation of U.S. currency to ... continue reading


Who gave them the right to freeze the national debt? Watch

Image of Treasury Secretary Jacob Lew sent a letter to House Speaker John Boehner and other congressional leaders in March that informed them that he was planning to declare a

By Catholic Online (NEWS CONSORTIUM)

There is such a thing as taking a "bull by the horns," but one wonders who granted them this extraordinary power. Treasury Secretary Jacob Lew sent a letter to House Speaker John Boehner and other congressional leaders in March that informed them that he was ... continue reading


Denied for faith: Arizona man allegedly rejected from job for being an 'obese Christian' Watch

Image of

By Talia Ramos (NEWS CONSORTIUM)

After being rejected from a job at a web hosting company, a man received an email that allegedly had an attachment where he learned the reasons why he wasn't accepted. According to his statements, he was rejected because of his faith and his weight, as stated in the ... continue reading


'We're in for a huge change in society,' billionaire Cartier owner declares Watch

Image of Nicknamed

By Catholic Online (NEWS CONSORTIUM)

Johann Rupert, the executive chair of luxury brand company Richemont in South Africa has a sobering view of the future. Making billions peddling Cartier jewelry and Chloe fashion, Rupert says that the tension between the rich and poor is set to escalate as ... continue reading


14 years after 9/11, One World Trade Center lacks the bustle of the old Twin Towers Watch

Image of The new One World Trade Center lacks the bustle of the old, with a third of its office space remaining empty.

By Matt Waterson (NEWS CONSORTIUM)

Following the aftermath of the September 2001 attacks in New York, Larry Silverstein, the property developer who had bought the lease to the World Trade Center for more than $3 billion, vowed he would rebuild. LOS ANGELES, CA (Catholic Online) - Almost a decade ... continue reading


Aging global population threatens to send world debt OUT OF CONTROL, Goldman Sachs warns Watch

Image of Part and parcel of Japan's economic crisis is the rise of male

By Catholic Online (NEWS CONSORTIUM)

The global economy is going to need a new business model - and fast. According to international financial adviser Goldman Sachs, the world's growing aging population - coupled with the reduction of young workers, the world is drowning in debt that it will be ... 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, Genesis 21:5, 8-20
5 Abraham was a hundred years old when his son Isaac ... Read More

Psalm, Psalms 34:7-8, 10-11, 12-13
7 The angel of Yahweh encamps around those who fear ... Read More

Gospel, Matthew 8:28-34
28 When he reached the territory of the Gadarenes on ... Read More

Saint of the Day

Saint of the Day for July 1st, 2015 Image

Bl. Junipero Serra
July 1: Miguel Jose Serra was born on the island of Majorca on November ... 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