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Income Growth For Bottom 90% In America Since 1966 Is... $59!

Tyler Durden's picture




 

Submitted by Michael Krieger of Liberty Blitzkrieg blog,

We’ve all seen these statistics before in one form or another, but David Cay Johnston does an excellent job going into more detail for us in an article he published late last month.  As he correctly notes, when things get extreme like this you ultimately end up with extreme social unrest.  Furthermore, as I have pointed out for years and years, this kind of disparity does not happen under free markets with rules and regulations applied equally to all.  It happens under totalitarian societies, whether fascism, communism or crony capitalist corporatism (which is the model in the USA).  It only happens when a very small oligarch class takes over the political process of a nation and then uses it to game the system.

However, I would take exception to Mr. Johnston’s conclusion that the root problem is the tax system.  While I do not for one moment deny that the oligarchs game the tax system to provide loopholes for themselves, this is not why the 1% of 1% has taken all the wealth of the nation.  This is much more related to the Federal Reserve and its policies of printing trillions of money out of thin air and distributing it to the oligarchs, either directly or through low interest loans.  If you tax the rich more, they will still make more because they will still have the access to the cheap money.  The Federal Reserve is the core cancer of the entire thing and they must be stopped.  Some excerpts below:

The average increase in real income reported by the bottom 90 percent of earners in 2011, compared with 1966, if measured at one inch, would extend almost five miles for the top 1 percent of the top 1 percent.

 

Remember, we got off the gold standard in 1971, after which the Federal Reserve could print as much as they wanted and distribute it wherever they wanted…and they have.

 

Incomes and tax revenues have grown from 2009 to 2011 as the economy recovered, but an astonishing 149 percent of the increased income went to the top 10 percent of earners.

 

If you wonder how that can happen, the answer is simple: Incomes fell for the bottom 90 percent.

 

Ponder that last fact for a moment — the top 1 percent of the top 1 percent, those making at least $7.97 million in 2011, enjoyed 39 percent of all the income gains in America. In a nation of 158.4 million households, just 15,837 of them received 39 cents out of every dollar of increased income.

 

In 2011 the average AGI of the vast majority fell to $30,437 per taxpayer, its lowest level since 1966 when measured in 2011 dollars. The vast majority averaged a mere $59 more in 2011 than in 1966. For the top 10 percent, by the same measures, average income rose by $116,071 to $254,864, an increase of 84 percent over 1966.


90percent

Between 1980 and 2005, more than 80 percent of the total increase in income went to the top 1 percent of American households.

 

The median wage has been stuck since 1999 at a bit more than $500 per week in real terms and job growth has lagged far beyond population growth. But capital gains and dividends have soared, a new Congressional Research Service study shows. And, of course, the rich get most of that income. Thomas Hungerford concluded:

 

That is a lot of stress being placed on people between the bottom rung and the top. I think it is more stress than the social ladder can bear, although when and how it will break no one will know until it happens.

 

Tax policy is driving these trends.

As I mentioned before, I disagree with the statement above.  He correctly points out that the super rich make their money from capital gains and dividends, but why have those grown so much?  It’s all Federal Reserve policy, which targets increases in assets prices that the oligarchs own.  It’s not a secret that Ben Bernanke is actively targeting the stock market with his money printing and not the real economy.  So who does that benefit?  That’s not tax policy, that’s monetary policy.

Full article here.

 

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Tue, 03/26/2013 - 19:51 | 3379488 Dr Paul Krugman
Dr Paul Krugman's picture

This just isn't true.

Tue, 03/26/2013 - 19:55 | 3379505 thedrickster
thedrickster's picture

What isn't true Krug?

Tue, 03/26/2013 - 19:58 | 3379521 Supernova Born
Supernova Born's picture

What's the answer to "extreme social unrest"?

1.7 billion hollowpoints, why thank you!
-Janet

Tue, 03/26/2013 - 20:04 | 3379549 DJ Happy Ending
DJ Happy Ending's picture

The incentive is either get rich, join the welfare-class or work for cash.

Tue, 03/26/2013 - 20:19 | 3379594 TwoShortPlanks
TwoShortPlanks's picture

Doesn't matter coz we're all savers....right?!

Tue, 03/26/2013 - 21:00 | 3379738 WayBehind
WayBehind's picture

59 bucks? Better than 59 Euros in Cyprus bank :)

Tue, 03/26/2013 - 22:41 | 3380057 Angus McHugepenis
Angus McHugepenis's picture

Doesn't matter coz we're all savers....right?!

Can you recommend a good bank?

Tue, 03/26/2013 - 23:38 | 3380160 TwoShortPlanks
TwoShortPlanks's picture

Bank Of Gold & Hole

Wed, 03/27/2013 - 00:00 | 3380186 Angus McHugepenis
Angus McHugepenis's picture

Yes... I've heard of that bank. Apparently only REAL MONEY is kept there.

Wed, 03/27/2013 - 02:16 | 3380212 TruthInSunshine
TruthInSunshine's picture

Bill McBride of Calculated Risk (a Hope & Change production)& Paul Krugman should collaborate and produce an awesome work of fiction. Those two have some extreme talent in that genre.

In the interim, it will all work out because we have legislators such as Maxine Waters, Harry Reid, John Boehner, Nancy Pelosi, Max Baucus, Dianne Feinstein, John McCainus, Lindsey Graham, Spencer Bachus, et al., along with a President as highly competent as Barack "I don’t know what the [national debt] is" Obama.

We also have The Federal Reserve, the SEC, the CFTC, The Treasury Department, the DHS, and the SCOTUS.

All is well.

 

p.s. - At least Obamacare will reduce health care costs. Errr...I mean massively inflate them...

Study: Obamacare to Raise Average Claims Cost 32 Percent (and as much as 80% in certain states)

ABC News ‎- 4 hours ago By RICARDO ALONSO-ZALDIVAR Associated Press WASHINGTON March 26, 2013 (AP)

Insurance companies will have to pay out an average of 32 percent more for medical claims on individual health policies under President Barack Obama's overhaul, the nation's leading group of financial risk analysts has estimated.

 

The report by the Society of Actuaries could turn into a big headache for the Obama administration at a time when many parts of the country remain skeptical about the Affordable Care Act.

 

The disparities are striking. By 2017, the estimated increase would be 62 percent for California, about 80 percent for Ohio, more than 20 percent for Florida and 67 percent for Maryland. Much of the reason for the higher claims costs is that sicker people are expected to join the pool, the report said.

Tue, 03/26/2013 - 21:17 | 3379798 FieldingMellish
FieldingMellish's picture

But being rich is not enough, as Cyprus has shown. You must outrun the rich man next to you continuously until there is but one man standing. The top will now feed off themselves as there is no meat left on the bottom 90%.

Tue, 03/26/2013 - 21:26 | 3379833 LetThemEatRand
LetThemEatRand's picture

  1. Hans:  "As Gandhi said...'An eye for an eye leaves the whole world blind'. I believe that whole heartedly.
  2. Bill:  "No it doesn't. There'll be one guy left with one eye. How's the last blind guy going to take out the eye of the last guy left whose still got one eye left? All that guy has to do is run away and hide behind a bush. Ghandi was wrong. It's just that nobody's got the balls to come out and say it."

-Seven Psychopaths

Wed, 03/27/2013 - 08:00 | 3380532 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

"The top will now feed off themselves..."

Yes, in the end there can be only one!

Now where have I heard that before?

Tue, 03/26/2013 - 20:07 | 3379561 HowardBeale
HowardBeale's picture

'What's the answer to 'extreme social unrest'?"

Whatever the required number is of hollow bankster heads--hollow because they have had one side of their heads blown off due to a point blank encounter with one of their victims, aka, Inhabitants of planet Earth.

Tue, 03/26/2013 - 22:03 | 3379948 max2205
max2205's picture

Oh snap

Tue, 03/26/2013 - 19:56 | 3379512 lolmao500
lolmao500's picture

Krug, take out the banksters cocks out of your mouth before speaking, it's impolite.

Tue, 03/26/2013 - 20:18 | 3379590 lotsoffun
lotsoffun's picture

krug was cooking socks.  he thought it was a roast beef sandwich.

but - on a relative basis - he's really rich.  and get's lots of attention.  if only he could get richer.

why do you think bernake has such a shiny head?  think jamie and lloyd have the shamy cloth on there when they meet?

Tue, 03/26/2013 - 20:00 | 3379534 McMolotov
McMolotov's picture

Here in Krugoslavia, the land of make-believe, we don't need no stinkin' facts.

Tue, 03/26/2013 - 20:06 | 3379558 JenkinsLane
JenkinsLane's picture

And Scruffy don't need no stinkin' trial.

Tue, 03/26/2013 - 20:17 | 3379588 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Krugoslavia and the Blank 'Czech' Republic...it would make nice punk band name.  Give Pussy Riot a run for their rubles.

Tue, 03/26/2013 - 20:02 | 3379543 Tinky
Tinky's picture

That might be your most incisive analysis yet.

Tue, 03/26/2013 - 20:03 | 3379544 alien-IQ
alien-IQ's picture

A room full of children that cannot do simple math is a tragedy.

A room full of adults that cannot do simple math is a meeting of PHD Economists.

Tue, 03/26/2013 - 22:12 | 3379975 calltoaccount
calltoaccount's picture

they can do the math.  they just get paid not to.

Tue, 03/26/2013 - 20:25 | 3379579 thewayitis
thewayitis's picture

 

     Whats not true Mr. Krugman? Speak to us ....Do you have the kahunnas...

 

 

       That's what I expected........No response 

Tue, 03/26/2013 - 20:27 | 3379627 Meat Hammer
Meat Hammer's picture

I picture you pouting, arms folded, kicking the wall, like my toddler.

Tue, 03/26/2013 - 22:36 | 3380045 Angus McHugepenis
Angus McHugepenis's picture

Meat Hammer: You didn't name your kid "Kruggers" by any chance?...

Tue, 03/26/2013 - 21:33 | 3379628 ziggy59
ziggy59's picture

Whats not true? The 2 next to your UP arrow? Oh, its true, man.

Wed, 03/27/2013 - 11:41 | 3381475 teolawki
teolawki's picture

Yes. From his two ZH accounts.

Tue, 03/26/2013 - 20:45 | 3379689 johnnymustardseed
Wed, 03/27/2013 - 00:52 | 3380239 PrDtR
PrDtR's picture

You're wasting your time.. anything vaguely intelligent which requires THINKING, will scare Krug off!!!

Tue, 03/26/2013 - 22:10 | 3379969 Pairadimes
Pairadimes's picture

Alright. I've had enough. I'll bite. What part of 'this' 'just isn't true'? And is it just not true from an 'in possession of irrefutable factual proof of a falsehood' kind of perspective, or from a 'Luke Skywalker clinging to a railing, reacting to Darth Vader's revelation' kind of perspective?

People like you make your living on the temporal and evidentiary disconnect between misguided policy and it's inevitable consequences. You wallpaper your monument to self with the accolades of the hopeful who are incapable of the kind of root cause analysis it requires to identify the truth in this clouded world, and believe this is proof of a life well-lived.

So let's ignore the fact that the vast majority of commenters on this site are registered under something other than their given names, and what conclusion some might draw about the ego needs of the one well-known individual on the site (do not assume there are no such others) that does not do so, and assume that you are Dr. K. Please share the meaning of your remark. Please prove to me and others here that you are something other than the uber useful idiot; the Jack Kevorkian of free enterprise in the 21st century.

Wed, 03/27/2013 - 04:38 | 3380371 AnAnonymous
AnAnonymous's picture

What part of 'this' 'just isn't true'?
___________________

Probably the stuff with the free markets in it...

Wed, 03/27/2013 - 13:20 | 3381864 akak
akak's picture

I'm sure it's nothing that some good old-fashioned ground "dragon bones" and fried tiger penis in bear gallbladder sauce cannot cure.  The efficacy of the cure, of course, being proportional to the degree of endangered status of the exploited species in question.  But do not look for self-indictment of overconsumption and exploitation from hypocritical Chinese Citizenism, for you will never find it.

Tue, 03/26/2013 - 22:33 | 3380039 Angus McHugepenis
Angus McHugepenis's picture

Somebody round off Krugger's for 60 junks. I got him at 59.

Wed, 03/27/2013 - 02:16 | 3380307 DollarMenu
DollarMenu's picture

If I remember correctly, there was a time in ZH days past when 50 'junks' would get a post pulled.

Wed, 03/27/2013 - 00:49 | 3380237 PrDtR
PrDtR's picture

You, SIR, are someone w/a THICK INFLATED HEAD.. but NO BRAINS!

YOU DON'T THINK.. almost robotic in your transmissions..

YOU PROGNOSTICATE, but do not show your reasoning!

Wed, 03/27/2013 - 03:47 | 3380341 All Risk No Reward
All Risk No Reward's picture

Hi Paul,

What are your thoughts on Big Business leveraging dictator controlled slave labor camps over in China to maximize profits?

What are your thoughts on a government that provides tax incentives to do so?

----------------------------

You might have missed this question the last 5 times I asked it, so here we go for try number 6 (and yes, I will continue to increment the numbers until you answer the question):

If growth is defined in monetary terms and money is debt (interest bearing), please explain how exponential growth of debt is sustainable into eternity.

If money (debt) exponential growth is not sustainable into eternity, then WHAT HAPPENS WHEN THE EXPONENTIAL MONEY (DEBT) GROWTH FAILS?

TIA...

Wed, 03/27/2013 - 04:25 | 3380362 Freewheelin Franklin
Freewheelin Franklin's picture

This just isn't true.

 

Why yes, it is true. One of those bastard children you had with that Austrian hottie, also known as the "Chicago Boys", showed, empirically, that in a monetary regime of intentional creeping inflation, real wages NEVER keep pace with real inflation. His name was Melchior Palyi. 

Tue, 03/26/2013 - 19:52 | 3379490 XRAYD
XRAYD's picture

The best income democracy can buy!

Tue, 03/26/2013 - 19:54 | 3379499 LetThemEatRand
LetThemEatRand's picture

You mean trickle down doesn't work?  Who knew?

Tue, 03/26/2013 - 19:55 | 3379509 lolmao500
lolmao500's picture

But... I'm told even the poorest in America aren't real poors... whatever that means.

Tue, 03/26/2013 - 19:56 | 3379513 nmewn
nmewn's picture

"It only happens when a very small oligarch class takes over the political process of a nation and then uses it to game the system."

Like Buffet's railroads hauling while pipelines are blocked by regulatory capture or picking basketball brackets instead producing a budget request?

Tue, 03/26/2013 - 20:19 | 3379597 Jay Gould Esq.
Jay Gould Esq.'s picture

Hear, hear.

Tue, 03/26/2013 - 20:25 | 3379620 LetThemEatRand
LetThemEatRand's picture

"While I do not for one moment deny that the oligarchs game the tax system to provide loopholes for themselves, this is not why the 1% of 1% has taken all the wealth of the nation.  This is much more related to the Federal Reserve and its policies of printing trillions of money out of thin air and distributing it to the oligarchs, either directly or through low interest loans."

And remind me who runs the Fed?

Tue, 03/26/2013 - 22:29 | 3380025 nmewn
nmewn's picture

Yes, its extraordinary isn't it?

The executives of A123, Solyndra, GM, FNM, FRE, GE, C, BAC, GS, Fisker etal make off like bandits and no one on the face of the planet saw it coming and NOW everyone wants to bitch about it.

Remarkable, the feeling of guilt without any association ;-)

Tue, 03/26/2013 - 20:00 | 3379535 Shizzmoney
Shizzmoney's picture

Do you ever think Bernanke or any other of the Fed Reserve heads ever just print money for themselves, like $100 or $500 whenever they want, so they'll have money to go out drinking with after helping oligarchs game the system?

You gotta feel like a God when you print that money, man. 

Tue, 03/26/2013 - 20:59 | 3379736 Papasmurf
Papasmurf's picture

He wouldn't need to print money to go drinking.  Drinks are free for him as a professional courtesy.

Tue, 03/26/2013 - 21:23 | 3379795 ZerOhead
ZerOhead's picture

$100 or $500? Not a chance...

Now $100 to $500 billion in free loans  and "currency swaps" (where no swapping takes place) to banks and foreign CB's who lend it on to other banks that Bernanke says he doesn't even know about for free?

Yes... that they do.

Watch Grayson ask Benny where the 500 bill went...

http://www.youtube.com/watch?v=n0NYBTkE1yQ

Now if I were a recipient of that free Bank Of God largess I would be more than happy to throw a couple of bills Benny's way...

Tue, 03/26/2013 - 20:03 | 3379547 Henry Chinaski
Henry Chinaski's picture

Debt slavery courtesy of the federal reserve and your friendly neighborhood federal government.

Bitchez!

Tue, 03/26/2013 - 23:05 | 3380091 Pseudo Anonym
Pseudo Anonym's picture

the federal reserve is not  the problem.  the problem are the greedy hofjuden that own the fed and run the fed not for the benefit of the nation, as the nation was led to believe in 1913, but the hofjuden run the fed to benefit themselves by enslaving individuals by debt and stealing the fruits of their labor by debasing the currency.

Wed, 03/27/2013 - 03:50 | 3380342 All Risk No Reward
All Risk No Reward's picture

Don't forget the sophist sychophants who led society down the path to serfdom...  at least he gets more than 30 sheckels, right Paul?

Tue, 03/26/2013 - 20:10 | 3379567 FleaMarketPete
FleaMarketPete's picture

"What does diversity in the workplace mean to you?"

“Uh, household incomes double and low skill workers earn middle class wages?”

“Very good Barry”

“But what affect does diminishing the value of labor have on income growth?”

“Just take your Adderall and draw a rainbow”

Tue, 03/26/2013 - 20:10 | 3379570 toady
toady's picture

That just isn't true!

There is NO WAY the average Joe is making more in inflation adjusted $ than in '66!

The rich get richer...

Tue, 03/26/2013 - 20:14 | 3379583 lolmao500
lolmao500's picture

Arbeit macht frei folks!!

Wed, 03/27/2013 - 09:05 | 3380736 Mr. Badger
Mr. Badger's picture

I have that tattooed on my penis for obvious reasons.

Tue, 03/26/2013 - 20:17 | 3379587 All Out Of Bubblegum
All Out Of Bubblegum's picture

C'mon now. 59 bucks is 59 bucks. That's valet tip level for all of us.

Tue, 03/26/2013 - 20:18 | 3379593 Cognitive Dissonance
Cognitive Dissonance's picture

And those numbers don't accurately take into consideration that an entire generation of female wage slaves entered the work force since 1966. Two working poor incomes are now needed to raise a family when in 1966 even a common laborer could do so on his wages.

Tue, 03/26/2013 - 22:27 | 3380022 Angus McHugepenis
Angus McHugepenis's picture

CD: Are you suggesting Gloria Steinem worked for the CIA? How dare you speak the truth!

Tue, 03/26/2013 - 20:19 | 3379596 fuu
fuu's picture

Total?

Tue, 03/26/2013 - 20:19 | 3379600 ziggy59
ziggy59's picture

Never scoff at 2 oz of the shiney, Ag.

Tue, 03/26/2013 - 20:20 | 3379604 tony bonn
tony bonn's picture

"...The Federal Reserve is the core cancer of the entire thing and they must be stopped..."

there is more truth and wisdom in this one statement than in 200,000 hours of rockefeller nazi programming on msnbc, cnbc, bloomberg, wsj, economist, and hosts of other economic whores who have polluted our knowledge of the truth...

Tue, 03/26/2013 - 23:11 | 3380117 Pseudo Anonym
Pseudo Anonym's picture

one sure way to stop the fed is to execute owners of the fed for crimes against humanity.

Tue, 03/26/2013 - 20:21 | 3379606 StarTedStackin'
StarTedStackin''s picture

Hoax n Chains

Tue, 03/26/2013 - 20:45 | 3379690 Umh
Umh's picture

Cute; I hadn't heard that before.

Tue, 03/26/2013 - 20:27 | 3379617 Kirk2NCC1701
Kirk2NCC1701's picture

Well, then riddle me this:

http://www2.ucsc.edu/whorulesamerica/power/wealth.html

As a similar author commented in his 1970's book:  "The USA is the banana republic par excellence."

 

Tue, 03/26/2013 - 23:32 | 3380150 GeezerGeek
GeezerGeek's picture

According to the chart showing 1922-2010 wealth distributions in that article, the wealth of the 1% peaked (in relative terms) under JFK/LBJ, fell under Nixon/Ford, began to rise under Carter, rose more under Reagan, Bush 1 and Clinton - during Clinton's reign it peaked - then fell when the dotcom boom ended, only to creep back up under Bush 2 and Obama. 

Apparently the rich prosper under presidents from both parties, although I don't recall a meaningful reason for the 9% drop under Nixon/Ford while inflation ramped up. 

Tue, 03/26/2013 - 20:26 | 3379622 Downtoolong
Downtoolong's picture

$59 eh? That's still more than the $0.89 I made on my six figure money market fund balance last month.

 

Tue, 03/26/2013 - 20:29 | 3379632 Tsar Pointless
Tsar Pointless's picture

Huh. And I have been told all of my life that there wasn't a "war" between the classes.

Perhaps I was told the truth, as I was born in 1970, and apparently, any such "war" was both waged and completed prior to my birth.

I guess I know what class won the war, then.

Tue, 03/26/2013 - 20:29 | 3379633 Umh
Umh's picture

Coincides very well with the "great society" bullshit of LBJ!

Tue, 03/26/2013 - 20:29 | 3379634 Ih8u
Ih8u's picture

The Federal Reseve manipulated markets illegally and with malice from 2006-2013. The Federal Reserve is a criminal entity the leaders of wich are individually guilty of treason. The white no jewish Americans should have the millitary destroy th federal reserve as an enemy combatant.

FREE WHITE PEOPLE DESTROY THE FEDERAL RESERVE AND DESTROY THE TALMUD LOCK ON US LAW

Wed, 03/27/2013 - 00:04 | 3380190 Angus McHugepenis
Angus McHugepenis's picture

Looks like Krugman has another ZH alias for diversionary purposes.

Tue, 03/26/2013 - 20:30 | 3379641 slightlyskeptical
slightlyskeptical's picture

Let's debate it out Paul. I think Tyler should create a special thread dedicated to a debate with the good Dr. Of course any debate should exclude the juvenile attacks that are often made here.

Specifically i want to know why there is no direct relief to the taxpayers? Why doesn't the Fed simply buy all the so-called 'bad" consumer debt, get the banks off the hook for it, refinance it with the consumer at better terms and leave it at that. It will resurrect consumer spending and put this bank bad debt stuff behind us.

Tue, 03/26/2013 - 20:30 | 3379642 lolmao500
lolmao500's picture

Good things the feds are gonna solve it all uh...

http://news.yahoo.com/little-hope-seen-millions-priced-health-overhaul-2...

Millions of Americans will be priced out of health insurance under President Barack Obama's healthcare overhaul because of a glitch in the law that adversely affects people with modest incomes who cannot afford family coverage offered by their employers....

Tue, 03/26/2013 - 20:31 | 3379647 F. Bastiat
F. Bastiat's picture

Certainly, Hussein Obama's regime is waging an economic jihad against the American people and the several states.

Tue, 03/26/2013 - 20:30 | 3379644 F. Bastiat
F. Bastiat's picture

Since LBJ or so, this has been a quasi-socialist country.

Tue, 03/26/2013 - 20:34 | 3379658 Ih8u
Ih8u's picture

KILL ALL THE USERERS. KILL ALL TRAITORS.KILL ALL FALSE JUDGES WHO COMMIT CRIME ON US CITIZENS.

DESTROY THE TALMUD SLAVE TRADERS> KILL THEM ALL

Tue, 03/26/2013 - 20:35 | 3379659 Bingfa
Bingfa's picture

Where do I pick up my 59 bucks?.....

Tue, 03/26/2013 - 20:39 | 3379670 LetThemEatRand
LetThemEatRand's picture

If we just let the wealthy "productive class" get a little richer and have fewer regulations, all will be solved.  Wealth will surely flow down to the middle class if we just tighten the belts of the greedy poor and let the wealthiest exist without any controls whatsoever.  The oligarchs exist and seek to make us all their serfs only because we have an elected government that can be bribed by them.  It is so obvious.

Tue, 03/26/2013 - 22:20 | 3379995 Angus McHugepenis
Angus McHugepenis's picture

LTER: Anything priced in "Benny Bucks" or Euros means even the rich are poor. The paper is worthless.

Tue, 03/26/2013 - 20:56 | 3379724 StarTedStackin'
StarTedStackin''s picture

Wagewise, I doubt I am in the top ten percent......asset wise and PM wise, I'd say I am.

 

 

I feel richer than ever, but that could just be the divorce! Wahooo! The bitch had to pay ME!

Tue, 03/26/2013 - 21:03 | 3379746 q99x2
q99x2's picture

Cut the cancer from the system.

Tue, 03/26/2013 - 23:16 | 3380122 Pseudo Anonym
Pseudo Anonym's picture

i suggest that owners of the fed receive aggressive radiation treatment along with chemo therapy

Tue, 03/26/2013 - 21:07 | 3379755 Falconsixone
Falconsixone's picture

I heard someone (alt. radio) today that said if minimum wage had kept up it would be over $22hr.

Tue, 03/26/2013 - 21:07 | 3379758 bonzo112358
bonzo112358's picture

CNBC Anchor - "What do you think about the research that shows that income growth for bottom 90% in America since 1966 is... $59!?"

CNBC Guest Host - "Well, we see QE filtering down to those 90% very soon.  This will have a major effect on those people."

CNBC Anchor -"Those people?"

CNBC Guest Host -"Yes, those people that are poor."

Tue, 03/26/2013 - 21:22 | 3379803 LetThemEatRand
LetThemEatRand's picture

"Filter down" sounds so much more reasonable than "trickle down."  No urine or semen connotation, so that's a plus.    But both expressions smell a lot like the same bull shit.

Tue, 03/26/2013 - 21:07 | 3379762 Fix It Again Timmy
Fix It Again Timmy's picture

Monk wants to know if you could round that out to $60.  Seriously, this is not shocking but it is disgusting in the extreme...

Tue, 03/26/2013 - 21:10 | 3379772 Fix It Again Timmy
Fix It Again Timmy's picture

There's no education, there's education and then there's REAL EDUCATION.  Sadly, the majority of Americans fall into the first two categories...

Tue, 03/26/2013 - 21:15 | 3379779 MarsInScorpio
MarsInScorpio's picture

What you see as "no one wants to work" is really the everyday people saying to themselves: The system is rigged; I wasn't born to the right family; I will never get into an Ivy League school - even if I had the brains, I don't have the money, and besides, I'd never be accepted by that culture anyway (As Alice learned in Wonderland, "She's a weed! She's a weed!" not a flower, so you'll be chased out of the Garden of Riches) - the people with money either inherit it (Trust Fund babies), or come from families so they can borrow it (Bill Gates, Zucker Facebook, Steve Jobs, et al.) . . .

 

hey know that the reason you read about some man or woman making a billion is because of the billions of people on Earth, only 1,426 people in the world have ever reached that level - so extraordinary attention is paid to them - as if this is something that if you only worked harder, longer, smarter, then you too could be a billionaire,

 

I hate to break it to people, but your chances of hitting it big in crony capitialist America is no better working your fanny off for a lifetime than it is to play the lotto.

 

So the next time you smuggly look down your nose at the slackers, maybe they have a more realistic view of their chances, than you have of their chances. They know they are born poor, they will live poor, and they will die poor.

 

For those of you juiced up on motivational tapes and books, please keep in mind your background wasn't the same as theirs. You really can't relate to them on any level - any more than you can realte to the uber-wealthy who run the world.

 

Please spare me the rah-rah about the Land of Opportunity. If your IQ is under 130, you're dead in the information culture. Because the IQ curve is a type of bell curve, it explains why there are so many "low information voters" - they naturally lack the IQ necessary to absorb and manipulate information the way those of you understanding what is written on this site can do.

 

It's all very tragic. As the need for a higher IQ to survive in the upper reaches of the economy increases, more and more people will just be unable to compete - not because of character flaws - but because of genetic realities.

-30-

Tue, 03/26/2013 - 23:27 | 3380140 Angus McHugepenis
Angus McHugepenis's picture

 

For those of you juiced up on motivational tapes and books, please keep in mind your background wasn't the same as theirs. You really can't relate to them on any level - any more than you can realte to the uber-wealthy who run the world.

Mars: I've got a dumb shit relative that got in the ground floor on "positive thinking" during the Hippie Days and has made MILLIONS during the past 30+ years. The fucker has an IQ of about 90. His cock rules his past, present, and future. He's still fucking 20-somethings at age 65+.

The old Boomers/Hippies have a much tighter audience and fan club especially amongst themselves. It's like a fucking cult... and they have wealth to spread around amongst each other. You know what makes me truly puke?... Watching my rich Boomer relative haggle on price for some piddly trinket in a foreign country, thereby robbing the poor even more. Meanwhile, I have visions of this piece of shit trash relative as he was poor and begging back in the 70's.

Sorry, did I mention he practically pioneered "positive thinking" into main stream?

Wed, 03/27/2013 - 01:47 | 3380287 kareninca
kareninca's picture

Angus, that is an entertaining example.  But really, he's not the norm.  All of the boomer/hippies I know are absolutely destitute, and a lot of the boomer/neverhippies, too.  You may be seeing more of it than is representative, since the ones that are rich, move to the same towns.

Wed, 03/27/2013 - 01:44 | 3380282 kareninca
kareninca's picture

True, MarsinScorpio, but incomplete.  A high I.Q. is necessary, but not sufficient, to do well in the world as it is now ordered.

Doing well in this environment requires a certain non-intellectual way of relating to the world, too.  A kind of rootless detachment from the people around you is very helpful.  An emotional attachment to people or places, is not a plus.

I have high school friends who scored well over 130, but because they don't want to leave their community, they have done very, very badly economically, and will continue to do so.  In the old days they would have done just as badly economically, perhaps, but at least they wouldn't be scorned.

Also, of course, anyone who is inclined to "tend" other creatures, human or nonhuman, is likely to remain very poor, not matter what his or her I.Q. is.  You see that all the time.

We sure are selecting for some nasty stuff.

Tue, 03/26/2013 - 21:28 | 3379837 moneybots
moneybots's picture

"this kind of disparity does not happen under free markets with rules and regulations applied equally to all."

 

Karl Denninger noted that several Tea Party members elected as republixans, climbed into the pockets of the bankers.  There is no free market, just frauds who pretend there is.  Thus the free market is attacked as being at fault, by the opposite wing.

Tue, 03/26/2013 - 21:32 | 3379855 LetThemEatRand
LetThemEatRand's picture

"Karl Denninger noted that several Tea Party members elected as republixans, climbed into the pockets of the bankers.There is no free market, just frauds who pretend there is."

And therein lies the rub.  

Tue, 03/26/2013 - 22:10 | 3379968 Angus McHugepenis
Angus McHugepenis's picture

Re-rub-lick-cans?

 

Tue, 03/26/2013 - 22:16 | 3379986 nmewn
nmewn's picture

Did Karl note which ones, exactly...you know, by name?

That would be helpful ;-)

Tue, 03/26/2013 - 23:10 | 3380113 LetThemEatRand
LetThemEatRand's picture

Helpful to whom?

Wed, 03/27/2013 - 06:54 | 3380441 nmewn
nmewn's picture

Helpful to those who would purge them, perhaps? If Karl didn't, its just an accusation or more properly, slander isn't it?

 

Tue, 03/26/2013 - 21:32 | 3379850 Ih8u
Ih8u's picture

all the banking traitors will be lined up and executed then dumped in a ditch. it will all be filmed in HD and even 3d for history.

 

this will happen around the world and in many towns, with many citizens groups trying and executing bankers in there own areas

Tue, 03/26/2013 - 22:25 | 3380011 The Invisible Foot
The Invisible Foot's picture

'this kind of disparity does not happen under free markets with rules and regulations applied equally to all." I disagree, it is inherent in competition.

Tue, 03/26/2013 - 23:27 | 3380141 dunce
dunce's picture

In the past social unrest was the result of real poverty, where people did not have enough to eat. Today so many are on food stamps , govt. housing, free medical care, free phones, disability, do nothing govt. jobs and other govt. social support that the only ones complaining are not the financial industry millionaires and dot com billionaires, but the middle class that work long hard hours every day and pay out most of what they earn in groceries, house payments, income, property, sales, social security and excise taxes along with their non discounted utilities, home owners insurance and if they have medical insurance, co-pays. A good life still maybe,but they earn it. When their kids get ready for college they might get loans but not full ride scholarships and not be able to get into many schools because of affirmative action set asides.

Wed, 03/27/2013 - 00:54 | 3380242 JR
JR's picture

Excellent analysis! dunce.

"Federal government spending now amounts to $31,679 per non-government employee, annually. This is a spending problem,  not a revenue problem." -- Mike "Mish" Shedlock

http://globaleconomicanalysis.blogspot.com

Wed, 03/27/2013 - 01:58 | 3380296 Audacity17
Audacity17's picture

Funny how the stagnation started about the time of the "Great Society" and explosion in government spending/regulation.

Wed, 03/27/2013 - 05:00 | 3380386 FunkyOldGeezer
FunkyOldGeezer's picture

Sooooo, 90% of wage earners have seen austerity imposed upon them for that long? We've been in stagflation for way more time than anyone officially admits to.

Time for the workers of the world to demand a humungous% wage increase, to bring them back in line, and yet plenty of guys here argue that even the minimum wage is too high! Back at ya, SOBs.

Wed, 03/27/2013 - 05:16 | 3380391 NuYawkFrankie
NuYawkFrankie's picture

$59 since 1966? Wow!

Where do I sign-up for this Land Of Milk & Honey?

And that ain't all - no Siree!!!

Fr'instance,  if you stuck that $59.00 in a JPM CD for 10years you'd have $59.89 - close on sixty bucks!!!!!!!

Only in America folks! Only In America!

Wed, 03/27/2013 - 08:07 | 3380547 RSDallas
RSDallas's picture

I would also point out that the inflation targets the fed stands by have raped the lower income earners just as much as wage depression. The producers, top 1 percent, can no longer pass on higher expenses but they can control what they pay for labor. Now throw in the fact that the upper management has in fact become too greedy and have decided to take much more of the pie than they rightly deserve and so here we are. Simply put, the Fed needs to be closed down!

Wed, 03/27/2013 - 08:26 | 3380586 FreeNewEnergy
FreeNewEnergy's picture

I wish my father were still alive to see this. I always used to tell him that it was easier to make a good living back in his peak earning years - 1955-1975 - than mine - 1985-2005 - but he never wanted to believe that the America he fought for in WWII was any different now than then.

He stubbornly stuck to his preferred line of reasoning, all the while watching single-earner households evolve into double-earner debt traps, inflation, stagflation, recession, government regulation and bungling, even as it got harder and harder for him to make decent money in his later years.

Now I know why my general acceptance of prices has been stuck somewhere around a 1974 level, when a new car cost $3500-6000, a two bedroom apartment was $400 and a steak dinner ran about $6-8. Because my income has been stuck there thanks to inflation. Back in 1975, I was making about $350 a week and had plenty of money left over after regular expenses. Guess what? I'm making a little more than that now - about $500 - but it's a struggle to get by. Taxes went way up since then, along with gas, food, rent and just about everything else.

Now, greed and loopholes may be great for the .001%, but inflation has truly wrecked our middle class and society.

And the wreckage continues.

Wed, 03/27/2013 - 08:30 | 3380604 Blue Dog
Blue Dog's picture

The article totally misses the biggest point: The deindustrialization of America has destroyed incomes across the country. Back in 1978 I started working for a foundry at today's equivalent of $20 an hour. There were a number of paper mills hiring in our area. If you didn't like one place you could go to work for another. As soon as I put in my application at the foundry I talked to the lady in personnel and I was hired on the spot.

Wed, 03/27/2013 - 09:39 | 3380893 AnAnonymous
AnAnonymous's picture

Wasnt life great under Americanism?

Too bad the commies took over.

Signed: an American.

Wed, 03/27/2013 - 13:15 | 3381842 akak
akak's picture

Wasn't Chinese life great under the "Great Leap Forward (into Starvation)"?

Too bad tens of millions of Chinese were starved to death by the commies.

Signed: ghost of a former Chinese citizenism citizen

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