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American Middle Class "Wealth" Worse Than Every Nation But Russia & Indonesia
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
One of Liberty Blitzkrieg’s most popular posts in 2013 was titled: How Does America’s Middle Class Rank Globally? #27. Here’s an excerpt:
We are number 1 right? USA! USA! No one can beat our wealth creation machine, our economic dynamism, our level playing field and our bastions of higher education. We have a middle class that is the envy of the world, right?
Well, like so much of the “American dream” we have been force fed for a generation or more, this perception is not based in reality whatsoever. Sure it may have been the case for a couple of decades immediately after World War 2. Before the military-industrial-Wall Street complex fully took over the political process, but it certainly isn’t true any longer. Myths die hard and this one is particularly pernicious because it prevents people from changing things.
The data in that article was based on a comprehensive study published by Credit Suisse titled Global Wealth Data Book. Well, the 2014 version is now out, and the results are not pretty.
Paul Buchheit has crunched the numbers, and highlighted some of his conclusions here. Here is some of what he found:
A recent posting detailed how upper middle class Americans are rapidly losing ground to the one-percenters who averaged $5 million in wealth gains over just three years. It also noted that the global 1 percent has increased their wealth from $100 trillion to $127 trillion in just three years.
The information came from the Credit Suisse 2014 Global Wealth Databook (GWD), which goes on to reveal much more about the disappearing middle class.
1. Each Year Since the Recession, America’s Richest 1 percent Have Made More Than the Cost of All US Social Programs
Much of the 1 percent wealth just sits there, accumulating more wealth. The numbers are nearly unfathomable. Depending on the estimate, the 1 percent took in anywhere from $2.3 trillion to $5.7 trillion per year. (All numeric analysis is detailed here.)
Even the smaller estimate of $2.3 trillion per year is more than the budget for Social Security ($860 billion), Medicare ($524 billion), Medicaid ($304 billion), and the entire safety net ($286 billion for SNAP, WIC [Women, Infants, Children], Child Nutrition, Earned Income Tax Credit, Supplemental Security Income, Temporary Assistance for Needy Families and Housing).
2. Almost None of the New 1 percent Wealth Led To Innovation and Jobs
In 2005, for every $1 of financial wealth there was 66 cents of non-financial (home) wealth. Ten years later, for every $1 of financial wealth there was just 43 cents of non-financial (home) wealth.
Over 90 percent of the assets owned by millionaires are held in low-risk investments (bonds and cash), the stock market and real estate. Business startup costs made up less than 1 percent of the investments of high net worth individuals in North America in 2011. A recent study found that less than 1 percent of all entrepreneurs came from very rich or very poor backgrounds. They come from the middle class.
On the corporate side, stock buybacks are employed to enrich executives rather than to invest in new technologies. In 1981, major corporations were spending less than 3 percent of their combined net income on buybacks, but in recent years they’ve been spending up to 95 percent of their profits on buybacks and dividends.
3. Just 47 Wealthy Americans Own More Than Half of the US Population
Oxfam reported that just 85 people own as much as half the world. Here in the US, with nearly a third of the world’s wealth, just 47 individuals own more than all 160 million people (about 60 million households) below the median wealth level of about $53,000.
This right here may be the most startling fact of all…
4. The Upper Middle Class of America Owns a Smaller Percentage of Wealth Than the Corresponding Groups in All Major Nations Except Russia and Indonesia
The upper middle class in the US, defined as everyone in the top half below the richest 20 percent, owns 11.9 percent of the wealth. Indonesia at 10.5 percent and Russia at 7.5 percent are worse off, but in all other nations the corresponding upper middle classes own 12 to 27 percent of the wealth.
America’s bottom half compares even less favorably to the world: dead last, with just 1.3 percent of national wealth. Only Russia comes close to that dismal share, at 1.9 percent. The bottom half in all other nations own 2.6 to 10.2 percent of the wealth.
Here’s a screenshot of the table detailing the pathetic status of America’s upper middle class from the report:
5. Ten Percent of the World’s Total Wealth Was Taken by the Global 1 percent in the Past Three Years
As in the US, the middle class is disappearing at the global level. An incredible one of every ten dollars of global wealth was transferred to the elite 1 percent in just three years. A level of inequality deemed unsustainable three years ago has gotten even worse.
While Paul’s observations are very important, I take issue with one aspect. Although his stats on the 1% are accurate, the truth is that the 1% have largely been treading water over the last few years. It is actually the 0.01% that have made all of the gains. Thus the transformation of America into an oligarchy (which was recently proven in an academic study).
To be fair, it doesn’t seem that Credit Suisse breaks down the data into these subsections (it should since this is where all the action really is). As this chart from a previous post, Where Does the Real Problem Reside? Two Charts Showing the 0.01% vs. the 1%, demonstrates:
This is an important distinction, since so much of the wealth disparity since 2008 has been driven by crony insider deals and the Federal Reserve injecting trillions of dollars into assets owned by banks and other financial oligarchs. Most of the 1% has no influence on government or Fed policy, nor do they want to. It is the 0.1% that exerts all of this influence and uses it to thieve.
Oh, and if you’re wondering how the American middle class ranks in the latest data, it improved two spots to #25. Just behind Greece.
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More of the vast right wing conspiracy
Right wings.
looks like a story here. Rhode Island has lots of the big problems of USA. Healy ran for governor for 7 times and only spent $37 dollars this year, but got 22% of vote... trying to intellectualizing the election and issues.
he said:
- Reconstitute Government
- Amend the Government you have
- Have a Revolution
Robert J. "Bob" Healey, Jr. (born May 3, 1957)[1] is an American attorney, businessman, educator, restaurateur, and political activist. He was the founder of Rhode Island's Cool Moose Party, the state's third-largest political party from 1994 until 2002, and has been a perennial candidate for statewide office.[2][3][4][5] Healey has run for Governor or Lieutenant Governor a total of seven times.[6] Running as an independent candidate in 2010, he won 39% of the vote for Lieutenant Governor, running on a platform of abolishing the office. As the Moderate Party nominee for Governor in 2014, Healey won 22% of the vote while spending less than $40 on the campaign.[7]
Once again I have a problem with a ZH story's methodology (recognizing the author is not Tyler Durden of course). The "Middle Class" is a slippery concept, especially when comparing across countries.
For example. in Peru, being, say, the 60th percentile of wealth means you are pretty poor. A lifestyle roughly equal to the US median income level would be about 80th - 85th percentile.
Global government will even that right out.
Molon Labe?
/LOL
This is easily solved with yearly asset tax on the super rich.
Now you tell the Sheeple. They can't buy internet service anymore. Too Poor.
The problem with the right and left wings, is they're attached to a turkey.
Remember visiting Third World countries in the 80s and couldn't believe the class disparities between 90% in poverty and 10% owning everything. Now, America may actually be worse.
In Korea, no Irish need apply!
http://tinyurl.com/pxygp5z
Well.. if that article was not the 'Feel Good Story of the Week', then I don't know what was.
Signed,
Clawing My Way Up to The Middle Class
You didn't build that wealth.
Naw Cautious use my method; imma sit on my ass and let the middle class descend to my level.
Won't be a long wait.
Hmm, something must have happened in 1971 because all of those stopped declining and started rising. I wonder what that was...
Republican administration.
The place to be poor is America. Free phone, cable, internet, food, lodging, etc.
+ 1
A lot of truth to that.
The poor in Peru are really poor.
The poor in Liberia are pretty poor too, but are they a fair comparison with America's poor?
America has the richest military (and politicians) in the world, by far. How much richer than Peru's?
No doubt about it, America has plenty of poor people. Compare the poor ghettos of Los Angeles, Dallas, or Detroit with the poor ghettos of Zurich or Geneva for example.
In Switzerland, it is claimed that the poor are given Mercedes cars as part of their benefits (because the Mercedes lasts longer and is therefor cheaper).
Yep. I may retire there... live off the fat of the land.
The freebies for those over 65 are impressive! Just keep those SS payments rolling my way, suckers.
Ok so what do we do now?
Start spreading vicious rumors about Bankers, Lawyers & Ivy League Graduates. These are the vastly involved in pushing for wars overseas, buying expensive weapon systems, Lobbying for Neoliberal Legislation, and special benefits for Prime Dealers, Banking Executives, and Wealthy Interests
- Support Auditors for Government Offices
- Strengthen FOIA
- Support Transparency and declassifying most of what government does
- Support overhaul of DOJ, and it's deal making with TBTF Banks
Audit the Fed, Prime Dealers, SEC, FINRA, FTC, DOJ, FBI, CIA, government contractors, CBO, GAO, Congress, Conflict of Interest in Congressmen, shadow Banking, Black Market Labor, FNMA, Lobbying
Rumors have been confirmed. The word on the street is the bankers are robbing us blind. Ask Max. Called every name in the book and yet, no Defamation of character lawsuits. Nothing. These men fear a court room. Same with 911 - the innocent would be suing for millions after reading or viewing the thousands of articles / expose' with specific names (Bush, Rumsfeld, et al) having taken part in this and yet....no lawsuit.
Doesn't that say everything?
Move to Australia.
I looked into it - have family in Perth.
They really tightened up what you need to do for residency, plus they said no ARs.
"America, fuck yeah!"
Go Team America! Oh wait...
so are people here poor who are preserving their so wealth through gold but even poorer now because you bought into the idea that gold is going to skyrocket and kept buying.
or are you in the middle class well you might as well be poor as per article and since there's no more middle class
or are you rich but not part of the 1% but recently lost all that wealth because you bought gold to preserve your wealth? hey at least you can go and sell your gold for fiat and buy pork bellies. hmmm deep fried pork bellies.
Free systems degenerate into Keepers and Kept because of unbounded capital accumulation.
Tragedy of the commons like USA today repeats until solution was found.
http://andreswhy.blogspot.com/2011/10/ostrum-game.html
At least you now have three choices
Keeper 5% , Kept 95%. Or Ostrum 100%
Have a nice bunfight . But remember , it is your grandchildren at stake .
The mega rich read this article and realize that there is more meat on the bone. They will do what it takes to make the U.S. #1 soon enough!
1970 was the start of relentless QE, at the very same time middle class Americe started its deep decline.
Lets confiscate it all and give it to Al Sharpton to redistribute.
Billy, I wonder how much of a role you and z/h played in the elections?
Something tells me Tyler is happy on his throne.
Those who tried it made this chart, ass up.
We must starve the beast that seeks to enslave us. Avoid multinational corporations, withdraw from international financial institutions, patronize locally ownned shops, restaurants and businesses. Keep your money local.
...and if you see a windmill, tilt the fuck out of it.
Hey look, the middle class is just gonna have to make some sacrifices. After all, they have to fund Israel's campaign of ethnic cleansing, and that ain't cheap.
http://www.youtube.com/watch?v=5lCKyZgnuYc
Early 70's coincided in shipping heavy industry and tecnology eleswhere ie China. Relentless QE creates a service economy This is where 1% really expanded their wealth. Our education and medical system has suffered deeply since this period too.
Since 9/11 things have got seriously out of control. I wake up every morning thinking; "Am I the one out of touch with reality".
If you know that 9/11 was an inside job designed, inter alia, to usher in a police state then you nare indeed in touch with reality. Unfortunately the vast majority of people are just not interested enough in finding the truth. That's what the overlords rely on.
You've got the Lower Class, the Middle Class and the Jewish Class, there is no upper class in the USA anymore.
I look forward to you Anti-Smite remarks
Annihilation of the Middle Class [private sector] has been one of Barry's stunning accomplishments.
I keep telling everyone and I started warning 3 years ago it's the Attack of the Killer Algorithms that move money and deny access. I figured it out when the Occupy movement started to explain to people, but duh?
It's all runs on the machines, you can't see it, talk to it..etc. So little by little those with the code control the world, it is what it is.
http://www.ducknet.net/attack-of-the-killer-algorithms/
You know all those employees and retirees from IBM, Walgreens, etc. that are sent to private insurance exchanges? You know what happens to them? Sure they get to pick an insurance plan but places that handle private exchagnes like AON have hundreds of quants that work with their data and sell it for profit too. Why do you think an investors relations firm with tons of quants wants to run an insurance exchange? Think about it.
http://ducknetweb.blogspot.com/2014/11/insurance-carriers-and-brokers-are-big.html
United Healthcare, 5 investments in low income housing, they want a rent check from you too. They are one of the biggest data sellers out there so to move in and get a good rental rate, be prepared to sign over all your data. This is an epidemic and why we don't do anything productive anymore in the US, the money's too easy to come by with setting up some algorithms to mine, score and sell your data.
http://ducknetweb.blogspot.com/2014/11/united-healthcare-makes-another.html
Oh and by the way, you'll be visiting some United Healthcare/Optum urgent care center some day too, yup they are doing that too.
http://ducknetweb.blogspot.com/2014/11/united-healthcare-makes-another.html
Those who have the data that can score and allow or deny access are in the control seat and it's on servers 24/7 that make the decisions so the fat cats up at the top who either do it themselves or hire quants to do the models have the money.
I am questioning my belief that free enterprise is all important. Perhaps a personal wealth cap of 10 mil would not be too onerous, perhaps import duties would help get our manufacturing back to this country, perhaps sealing our borders for a period of time would allow us to work out our immigration problems, perhaps a cut of 50% in all but the military would begin to solve our debt problem, perhaps not everyone is entitled to unlimited funding for higher education, perhaps we do not need all the military bases around the world, perhaps we do not need to to keep feeding the cocktail circuit in all those embassies, perhaps we do not need to solve every problem that arises in other countries - shit happens, perhaps.....
and we have enemies that continue to grow stronger and we will eventually have to defend our existence or face the necessity of preemptive strikes around the globe - humans are animals after all.
I hope that you hold no levers of power.
We shall see that no one has the lever of power as resources run short. If we do not correct our habits now, the violence of the mob (or nation) will destroy us.
Do you think that Iran, Russia, China, Pakistan, N Korea will stop their development of weapons until someone pulls the lever.
homey, WTF? resources run short you say?? like oil price dropping like a rock? nothing against living reasonable, like not pissing in your neighbor's water- but man :made all his advances by use of tools and mind, inventions and education science medicine a fair rule of law -refinement of government (until reptiles got the power)..all real problems are caused by this one fact: How can the elite wealthy keep power and wealth and control and still advance society..the advance society part seems to have been sacrificed..no our real problems are those in leadership have no vision no moral basis no loyalty to improving man, just the attempt to keep control and fear of the masses..that is man's problem the leadership is insane with fear, so we get TSA and HLS to control us not some goat herder in the sand box.
Its about water and food for the near 8 bil people. Its also our nature to develop bigger and better clubs and spears.
edit There will always be a goat herder in the sand box - maybe a smart one or one that will lead us to destruction (as now).
I question your "FREE ENTERPRIZE"....
Is it free to manipulate the loans and currency's of other countries? The IMF loans money (DEBT) to leaders that hold an Iron fist on the peoples of third world countries, then the debt is control of OIL or other commodity that is the only chance of these countries to become self reliant? All this so the rich get richer and these :RICH" tell or force the Government and it's Millitary to invade or overthrow others Government calling it in America's Interest......Do You Sleep at Night? Do you believe in after Life? There will be a revolt in the future......I will not Battle on Your Side.
After LBJ pushed through Food Stamps, Medicade, created HUD and the welfare program in the '60s all those hippies didn't see a reason to work anymore. Those same leaches are now the spaceballs who are running things in DC, especially so in the Democratic Party.
Great Society my ass. It was the greatest pile of cow…
I always love that shit when politicians say, "America is the worlds richest nation." Rich in what, hubris?
...arrogance, murder, crime, prison population, cop murders of citizens, dog shootings, drug consumptive ... We really are blowing out the global curve!
I feel we're entering a "technocratic socialist / communist state" and its coming quicker than we think.
9/11 was a massive wake up call.
Too many people on that fateful day took the easy pill due to their cognitive dissonance / Stockholme syndrome (dumbed down education on all levels, parental or state / private schooling). I feel another dark age is upon us. This dark age I see coming is a lot different from the previous dark ages. I'll stop here.
You are right about a wake up call but in the dark ages ,i believe that knowledge was withheld or not available - today just about all information is available but people are too stupid or too lazy to learn.
"The greatest tension in any state is the mutual resentment between the rich and the poor. Consequently, a strong middle class keeps a state in balance and guards against corruption and oppression." Aristotle - Politics
Big difference, Russia and Indonesia already know their poor. Wake up call
Great data. The top 1% better advised are not predominately in paper assets as many wishfully think. Meltdown of paper assets will hit the next tier of the 9% most. These are the global trotting yield chasers sucking in the spins of the snake oil salesmen in the financial industry.
The wealth has been transferred en mass. Who made a killling setting-up this up?
I read through all the comments and people recognized 1971 but no one mentioned gold std.
Going off gold std allowed huge risk free leverage that has been accelerating since.
That explains the top .1%
Greedy unions,free trade and high taxes made all the factories, in north america, go the way of skittle shitting unicorns.