U.S. Wage Disparity Rises To New Multi-Decade High During Obama's Last Year In Office

Tyler Durden's picture

Roughly eight years ago, Obama infamously first shared with "Joe the Plumber" his plans to "spread the wealth around."  Unfortunately, at least for the like-minded socialists of the country, as data from the U.S. Bureau of Labor Statistics reveals, he failed miserably. 

In fact, as Bloomberg points out today, not only did income inequality not decline under Obama's reign, it actually surged to multi-decade highs with people in the 90th percentile of all earners bringing home over 5x the amount paid to people in the 10th percentile.

Income Disparity

 

Of course, as we pointed out in a post entitled "Harvard Crushes The "Obama Recovery" Farce With 9 Simple Charts", low-income wages have been stagnant, in real terms, since the mid-1970s.  And, despite Obama's vow to "spread the wealth around", real wages for the poor actually suffered under his presidency. 

Wage Divide

 

As Bloomberg notes, wage disparity is supposed to be counter-cyclical, rising during periods of economic contraction and falling during expansionary periods.  Which, obviously, begs the question of exactly how income disparity could be surging in light of Obama's stunning economic recovery that he so often bragged about. 

Americans near the top of the income scale, whose weekly earnings exceed those of 90 percent of all full-time wage and salary workers, made at least $2,095 in a typical week last year, according to the report released Jan. 24. Those in the bottom 10 percent earned less than $415.

 

It's not all bad news: The latest figures show overall median weekly earnings for the 101 million workers 25 years or older last year climbed about 3 percent to $885, from $860 in 2015. The 2016 figures were reported by the Labor Department this week along with its fourth-quarter data from a survey of U.S. households.

 

Wage disparities tend to be counter-cyclical, rising during times of slower economic growth, and usually shrinking when the business cycle accelerates. Of course, inclusive policies and opportunities to move up the socioeconomic ladder also play a huge role.

 

While the economy has grown at a historically modest 2.1 percent rate on average in the current expansion that began in mid-2009, the U.S. is almost at full employment now and the tight labor market has sparked hope that workers across the board will eventually see a lasting pickup in wage growth. Whether paychecks also reflect less inequality in coming years is anyone’s guess.

Wage Divide

 

Unfortunately, "Hope" was not an effective plan.

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Proctologist's picture

O'bumble - worst. President. Ever.

Woodrow Wilson blushes with disgust.

xythras's picture
xythras (not verified) Proctologist Jan 26, 2017 8:14 PM

Is this analysis from the same "scientists" that gave us global warming and pig-humans?

Scientists Create first pig-human Hybrid

http://dailywesterner.com/news/2017-01-26/animal-farm-scientists-create-...

dexter_morgan's picture

creepy, as well as raising some serious ethical questions

JamesBond's picture

Joe the  Plumber for any open position at the Treasury Department.

 

jb

any_mouse's picture

Do you ever have an thought or opinion that is independent of dailywesterner?

Or a comment that is specifically related to the current thread?

LyLo's picture

You know those moments, when someone says something that sounds ridiculous and stupid, and you think there's just no way so you start laughing...  But then it turns out its modern times, and that person isn't crazy the fucking world is. 

WTF is wrong with people?

buzzardsluck's picture

You seem to have forgotten abe lincoln as being the worst prez ever.

TeamDepends's picture

Minimum Rage hike = Soma = A mind is a terrible thing

nmewn's picture

What was it...like 20-15 billion to fuck over bond holders & bail out GM?...and they're having a hard time scraping together 12-15 billion for a friggin wall?

booboo's picture

All I know is most of the local .GOV BLM bling wearing chair warmers around here drive Mercedes or BMW so there are the haves and have nots in their own race which is why Trumps message of "where has voting for them for the last 40 years got you" hit the mark with many blacks and that scares the shit out of the plantation owners.

LetThemEatRand's picture

And yet millions of Americans who got fucked by his NWO actions still think he did a great job because he said stuff they liked.  

CompassionateConservative's picture

Wrong.  He did a great job because he's black.

BabaLooey's picture

Rand: This idiot "Compassionate Conservative is the KingDouche of Trollolopolous

TeethVillage88s's picture

" ...as Bloomberg points out today, not only did income inequality not decline under Obama's reign, it actually surged to multi-decade highs with people in the 90th percentile of all earners bringing home over 5x the amount paid to people in the 10th percentile."

" ...as we pointed out in a post entitled "Harvard Crushes The "Obama Recovery" Farce With 9 Simple Charts", low-income wages have been stagnant, in real terms, since the mid-1970s. And, despite Obama's vow to "spread the wealth around", real wages for the poor actually suffered under his presidency.

- Where were Bloomberg & Harvard in the Propaganda Years and why are they still there?
- Donald Trump, please take note

Baby Eating Dingo22's picture

And this income disparity will accelerate 10 fold in tRUMPs first year

Add in inflation and there's going to a lot of poor, hungry pissed off people in 2018

shimmy's picture

And yet most of those low income earners probably still voted democrat and will continue to vote democrat. Amazing how brainwashed they are.

holdbuysell's picture

"As Bloomberg notes, wage disparity is supposed to be counter-cyclical, rising during periods of economic contraction and falling during expansionary periods.  Which, obviously, begs the question of exactly how income disparity could be surging in light of Obama's stunning economic recovery that he so often bragged about. "

Why? Because the economy hasn't been expanding. Measured in real terms, using real inflation measures (5% - 9%), the economy is actually contracting. Bloomberg at least got the relationship part right; the fake inflation statistics did the rest to cause the cognitive dissonance.

Dilluminati's picture

Its the end of the month, I'm officially broke again.

Next month like last month.

ArtOfLife's picture

I'm sure Trump and his billionaire cabinet will turn this around.

Cassandra.Hermes's picture

Guys just blame yourself, my university and private fund started startup incubator. I'm in the supervisory board of two of the startups. I have interviewed close to 100 potential employees, we have hired very small percentage of them and most of the positions are unfilled. The one we hired are 2/3 foreign born. We are offering 6 digits salaries. So where are you?

Crusader75's picture

American economic history began in 2009, the policies we pursued between 1981-2008 had no role in creating today's America. And thank goodness President Trump is now in power and will enormously reduce all that evil Obama wealth inequality. He's going to start by greatly reducing my taxes, which will be quite a savings, since I have a net worth of $11 million. Meanwhile my dad is worth $25+ million, and when he dies, it now looks like my brother, sister and I will have to pay no estate taxes at all. But we will of course share the wealth by giving bigger tips to waiters and caddies.