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Middle Class Incomes Yet To Recover From Crisis As Wealth Gap Widens
“First, widening inequality is a very long-term trend, one that has been decades in the making. The degree of inequality we see today is primarily the result of deep structural changes in our economy that have taken place over many years, including globalization, technological progress, demographic trends, and institutional change in the labor market and elsewhere. By comparison to the influence of these long-term factors, the effects of monetary policy on inequality are almost certainly modest and transient.”
That’s what Blogger Ben Bernanke (who is of course distinct from PIMCO advisor Ben and Citadel co-conspirator Ben) had to say earlier this month about the idea that the Fed’s post-crisis policies have contributed to income inequality in America.
The above-cited Bernankespeak can be translated as follows: poor people have been getting poorer for a long, long time, so sure, maybe the Fed contributed a little bit, but probably not a whole lot.
A common sense appraisal of QE tells a different story.
Deliberately inflating the assets most likely to be concentrated in the hands of the rich quite clearly increases the wealth divide and indeed, even the St. Louis Fed acknowledges that the American Middle Class is effectively dying a slow death in the post-crisis world.
For proof, look no further than the latest data on US household income which shows that while the 0.001%, the 0.01%, the 0.1%, and the 1% have all nearly recovered their pre-crisis share of the national income, the bottom 50% of US filers' share is not only lower than it was in 2007, but is in fact lower than it was in the depths of the crisis:
More color from Bloomberg:
The IRS recently released its latest income data on U.S. households. The numbers, which go through 2012, show that the top sliver of taxpayers recovered quickly from the recession. That's not what happened for everyone else.
U.S. household income is getting increasingly concentrated at the top. That was especially true in 2012, when there was a race to sell valuable assets before the top capital gains tax rate jumped to 23.8 percent from 15 percent.
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Perhaps Blogger Ben will help to explain the above — which seems to contradict his assessment — in a forthcoming Brookings post.
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The sky is blue dontcha know?
I still wonder about people's naivete ...
Middle Class income - yet to recover?! *Bisonians* - YOUR income WAS NEVER meant to recover in the 1st place! For *ANY* positive development - *YOU NEED* to plan & execute properly.
Look in which sphere the *positive* can be measured and trace back the events and the steps and you will highlight easily the real plan.
Consider what is the true definition of MIDDLE CLASS? we are made to believe that middle class means you have a 25 year mortgage and a 7 year car loan aka "The American Dream" when in reality, shouldn't middle class be the group that separates the oligarchs from the WORKING CLASS? In my mind, if you work 40 hours a week, you ain't middle class
I am going out on a limb and saying this article was conceived, written, and definitely illustrated by an East German. Is Angela now moonlighting as a Tyler?
"More color from Bloomberg," is a stone-cold lead-pipe lock.
Sheeesh. There is no more economy in half-tone!
Middle class don't care, just give them 401ks.
The corporation I work for keeps outsourcing the middle class jobs so there is definitely an over supply of middle class workers. Wages are actually deflating due to this cycle.
1. Work in a middle class position for middle class wages.
2. Get outsourced, collect pittance of a serverance, and unemployment.
3. Get hired by an outsourcer for lower wages and replace some other middle class worker.
4. Rinse and repeat.
Scooby is increasingly disturbed by the acknowledgment of a great wealth divide in the land of opportunity.
Indeed, even the St. Louis Fed acknowledges that the American Middle Class is effectively dying a slow death in the post-crisis world.
How will the little pups make their way in this country. The rags to riches story will elude most of the struggling people of this great nation.
Which is why for 40 years the income threshold for overtime pay hasn't changed.
"You're a manager now, so work 60-70 hours per week and get the same pay."
"Oh, you're a 'professional' class employee, we'll pay you a salary of $35K and make you do two jobs and work 60-70 hours."
PONZICONOMY!
Is dis what you call "big data"?
Would be nice if, for scale, they also showed that missing 49%.
To keep it, they must hold it, that is to say "have boots on the ground" who won't wilt away. The old adage still remains true, whether through "law enforcement" or tyranical bought & paid for private armies.
Got guns & ammo yet?
I do ;-)
Whether they admit it or not nmewn, they are nervous. No matter how many guns or mercenaries they have, they are simply outnumbered. They fear a Custers Last Stand moment knowing some hostiles will refuse to be put on the reservation.
When you must pay another to do something you cannot do, it reveals your weakness. This is true for us all.
Miffed
this is not important. what's important is how each one of us self-identifies and what manner we choose to express it publicly. so people know just who we are at every moment. on faze book and shit.
everyone gets a raise as soon as the bunkers are finished.
Unemployment, real unemployment, is over 20%. Supply and demand are real in the labor markets for the jobs which require little to no experience or education. If you fire a bus boy or french fry cook, they can easily be replaced by somebody at the same or lower wage. Fed policies reward only the wealthiest, and they know it. US military and foreign policies reward the wealthy because they own most of the stock in defense contractors. The wealthy own the lion's share of all investments, the investments which are funded by the Feds easy money and bailouts. The "free trade" bills will make things worse since they wiil lead to lost jobs here in the US, and they know that too. They just dont give a shit about the poor or the middle class. And it shows.
Did you see the news this morning that Staples is buying OfficeMax? Next come the layoffs for redundant office staff. Thirty years ago there were millions of independent office supply stores that supported families and the community. Now they are gone, replaced by a monopoly that didn't out compete them, but had favorable regulatory treatment and access to zero cost capital.