The Rich Get Richer: America's Top 1% Now Control 38% of the Wealth

The_Real_Fly's picture

Real estate prices in many of the top zip codes in America have doubled over the past 5 years. In some hotter markets in California, gains are in excess of 200%. The tech heavy NASDAQ is +121% over the same time period, helping buoy the richest amongst us to new heights.

According to Forbes' Cost of Living Extremely Well Index, a basket of 40 luxury items, they've risen -- uninterrupted -- since 1982. Recession proof.

The inflation rate for the elite has been running hot since '82, averaging 5%. Although it's hard to get a hard reading on what the true inflation rate is for the wealthy, some argue it has been running in excess of 10% for the past decade.

Statistics released by the Federal Reserve revealed the top 1% now control a record 38.6% of America's wealth. The bottom 90% of wage earners have been falling for 25 years -- touching down at a 22.8% share in 2016, down from 33.2% in 1989.

Aside from wealth, the rich are increasing their earnings on an annual basis too, with reported incomes hitting a new high of 23.8% in 2016, up from 20.3% in 2013.

Warren Buffett believes the Dow will hit 1 million within 100 years, conservatively. All of these lofty projections and data points leave out the specter of pullbacks, an arrogant position given the historical likelihood of this being an impossibility.

One day, markets will dislocate, real estate prices careen lower, rich people flung from their windows directly into crematories, effectively leveling out these gross differences. Until then, however, let the good times roll.

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GoyimUprising's picture

Kill the elite and take their shit.

surfeitndearth's picture

heh heh... what's that line about 'shootin' fish in a barrel'? It'll be more fun if they think they've got good hidin' places!

dunce's picture

The top 1% also pay 39% of all federal taxes. Does this mean that there is an efective wealth tax??

He-He That Tickles's picture

Lol, the top 1% pay for jack shit other than more exotic ways to kill us off. You should guard their bunkers if you believe they pay 40% in taxes....because they go down to H&R Block too.

techpriest's picture

What is the average and minimum net worth of someone in the top 1%? At 20, 30, 60, etc.?

thebigunit's picture

News bulletin:

Capitalism 101

People who don't create wealth likely don't have any wealth.

14,000 years ago, at the end of the last ice age, one hundred percent of humans were foragers, and and human beings had NO wealth.

ZERO!

Then, someone invented capitalism (herding and agriculture) and over the last 14,000 years, capitalism has created enough wealth to feed a planet of seven billion people.

JibjeResearch's picture

A true statement "People who don't create wealth likely don't have any wealth."

He-He That Tickles's picture

People like Bezos and Zuckerburg created all that wealth not by capitalism. Do they even have to pay tax? I'm fairly certain they are American royalty.

thebigunit's picture

Humanity has ONLY TWO ways to obtain food:

  1. Foraging
  2. Production

Production = capitalism.

People like Bezos and Zuckerburg created all that wealth not by capitalism

I hope your not going to try to convince us that B and Z made all their money as "hunter-gatherers".  That's an awful lot of roots and berries.

thebigunit's picture

This is the FUNDAMENTAL basis of politics.

Humanity has ONLY TWO ways to obtain food:

  1. Foraging
  2. Production

Production = capitalism.

If you don't understand this, you don't understand politics.

Blue Steel 309's picture

What about foraging for oil, minerals, ocean fishing?

If production is capitalism, then what would you call the economic activity in the USA?

You are a moron.

JibjeResearch's picture

"hunter-gatherers" BAaaawwww ahahaha  you are a very funny-cool guy.... 

Pernicious Gold Phallusy's picture

You're talking about global increase in food stock. On a small scale people can obtain food by stealing it from others, or by swindling other people out of it.

thebigunit's picture

Exactly!

 On a small scale people can obtain food by stealing it from others, or by swindling other people out of it.

That's what foraging is.

The majority of the people on earth today are probably foragers.

"Taxation" is collective foraging by the dominant political tribe.  They forage the wealth of successful producers, a.k.a "rich people".

The Bernie Sanders base of socialist millennials are overwhelmiingly foragers.


BandGap's picture

As soon as I get paid I will be one of them 1% er guys. Just you watch.

TeethVillage88s's picture

Good times Roll - The Cars

https://www.youtube.com/watch?v=7BDBzgHXf64

Let the good times roll
Let them knock you around
Let the good times roll
Let them make you a clown

Let them leave you up in the air
Let them brush your rock and roll hair

Let the good times roll
Let the good times roll
Let the good times roll

Let the stories be told
They can say what they want
Let the photos be old
Let them show what they want

Let them leave you up in the air
Let them brush your rock and roll hair
Let the good times roll
Let the good times roll-oll
Won't you let the good times roll

Good times roll

If the illusion is real
Let them give you a ride
If they got thunder appeal
Let them be on your side

And...

http://www.zerohedge.com/news/2017-09-26/teachers-demand-3200-each-kentu...

http://www.zerohedge.com/news/2017-09-27/fed-stunner-top-1-americans-are...

1980 - Most favored Nation Status for China (J. Carter)
1984 - Caribbean Basin Initiative,
1994 - WTO Formed, Marrakech Agreement
1994 - War on Jobs, NAFTA,
1994 - Most Favored Nation Status for China Reinstated after Tianamen Square
1996 - Most Favored Nation Status for China Reinstated after Test
2000 - Permanent Normal Trade Relations with China and WTO Membership for China
2005 - CAFTA-DR Ratified, 2006

conomist has NEGATIVE $750 Billion Trade Balance.

http://www.economist.com/node/21604509

Trade balance Current-account balance Currency units Budget balance Interest rates
Country latest 12 months, $bn latest 12 months, $bn % of GDP, 2016* Feb 16th, per $ year ago, per $ % of GDP 2016* 3-month latest 10-year government bonds, latest
United States -750.1Dec

https://fred.stlouisfed.org/series/GINIALLRH (By Race)
https://en.wikipedia.org/wiki/Gini_coefficient
https://en.wikipedia.org/wiki/Wealth_inequality_in_the_United_States
https://www.cnbc.com/2017/08/07/the-wealth-gap-in-the-us-is-worse-than-i...
https://en.wikipedia.org/wiki/Income_inequality_in_the_United_States

Manufacturing:
http://research.stlouisfed.org/fred2/series/MANEMP (12 Million down from 19.5 Million) All Employees: Manufacturing

Information Services:
http://research.stlouisfed.org/fred2/series/USINFO (2.65 Million down from 3.7 Million) All Employees: Information Services

Investment
http://research.stlouisfed.org/fred2/series/ROWFDNQ027S Foreign Investment (Higher than Domestic)
http://research.stlouisfed.org/fred2/series/GPDI Domestic Investment
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm

Money
http://research.stlouisfed.org/fred2/series/mult (Up to Date, but looks like Crap, eh?)
http://research.stlouisfed.org/fred2/series/M1V (M1 seems to increase with Mortgages)
http://research.stlouisfed.org/fred2/series/M2V (M2 seems to show different bubble perhaps)
http://research.stlouisfed.org/fred2/series/MZMV (MZM seems to show peak in Economy 1981)

Planing for Domestic Inflation from say 1971 Nixon Shock is... Dangerous... and Destroys Social Security, Elderly, Fixed Income people, and the... Social Contract!

Wow!

Bubble Man's picture

"And, the top 1% pay 40% of federal income taxes,  Sounds like they're paying MORE than their fair share,

Statistics released by the Federal Reserve revealed the top 1% now control a record 38.6% of America's wealth.

The bottom 50 percent of federal income taxe filers pay 2.75% of federal income taxes."

Would you rathar make $1billion and get to keep 60% of it or make $20k and keep 97% of it?  The top 1% should be happy they get to keep 60% of county's wealth & property and be happy to pay the 40% taxes as insurance from those angry mobs with guns, pitchforks, etc but i digress.


libertyanyday's picture

taxes arent levied for revenue, they are levied for power,control and fear. 1 percenter or not, try not filing..........liens, levies, garnishments........you will pay.

techpriest's picture

The top 1% should be happy they get to keep 60% of county's wealth & property and be happy to pay the 40% taxes as insurance from those angry mobs with guns, pitchforks, etc but i digress.

You should remember...

1) That the rich can leave.

2) Every time the wealth was forcibly taken, mass starvation followed because the "angry mobs" cannot produce and are only able to take. My great-grandmother-in-law lost everything to the Red Guard, and "the people" squandered everything and starved within 2 years. We're seeing the exact same outcome in Venezuela right now.

3) "The 1%" is also a statistical fiction: When I was 20, my net worth was ~$5,000 (car). When I was 30, it was $50,000 (I got a PhD and blew half my 20s financially). When I am 40, not including inflation my net worth will be $500k+, depending on how specific ventures turn out. Most inequality computations look at *everybody,* when if you look at just myself, there are order-of-magnitude changes every ten years. With that kind of dynamic, there are always going to be a few older folks who saved and invested consistently for years, and get into the top 0.5-5%, with no special luck beyond that.

This is all a mathematical distraction, when the real question is to ask about income mobility - if people who *want* to get ahead have multiple avenues to do so, then that is good. If those who walk through the door of success can gain the power to have the government shut the door behind themselves, *that* is a problem.

thebigunit's picture

How about if the top 1% kept the wealth that they created, and the bottom 97% kept the wealth that THEY created.

That would be fair,

Would you rathar make $1billion and get to keep 60% of it or make $20k and keep 97% of it?

Blue Steel 309's picture

Because it is a complete fucking lie that they created any wealth. There hasn't been any wealth creation in the USA since the 1970s. It is all fucking rent seeking.

thebigunit's picture

So, the wealth in the USA has only been CONSUMED since the 1970's?

There hasn't been any wealth creation in the USA since the 1970s.

How much wealth did the USA have in the 1970's?

How much has been consumed?

How much is left?

When does the wealth guage go to zero?

 

thebigunit's picture

And, the top 1% pay 40% of federal income taxes,  Sounds like they're paying MORE than their fair share,

Statistics released by the Federal Reserve revealed the top 1% now control a record 38.6% of America's wealth.

The bottom 50 percent of federal income taxe filers pay 2.75% of federal income taxes.

Hari_Seldon's picture

Make sure you don't include unearned income that is sheltered...Oh wait.

 

He-He That Tickles's picture

So basically, kill one of those motherfuckers, take his money, and that would eliminate 50% of taxes. Sounds like a great sacrifice, if a sacrifice has to be made.

nmewn's picture

"The bottom 50 percent of federal income tax filers pay 2.75% of federal income taxes."

I guess "the socialistic politics of state sanctioned greed thread" didn't work out quite as well as the author expected.

Plus one ;-)

OverTheHedge's picture

If the top one per cent a own almost everything, and the next 50% own EVERYTHING else, why get snotty about the fact the other half, who have fuck all, don't pay sufficient taxes? Can't get blood from a stone. If you let them own some shit, you could then steal from them more effectively. If you keep them as rent paying impoverished slaves, there won't be much vig left for the state.As it is, you have to give them free money just so they can actually do some consuming and keep the wheels turning on the economy.

Sorry.

nmewn's picture

The "snotty" part is when they use .gov to steal from others. 

I don't accept the premise that someone is owed something (from me or anyone else) for merely being born. 

libertyanyday's picture

taxes are levied for fear and control...........we can print trillions, tax revenue is irrelevant.

giovanni_f's picture

"And, the top 1% pay 40% of federal income taxes". Off-topic and irrelevant argument, almost brain-dead. It implies that the parasites pay back their "due" share to the community whereas in fact the tax money is funneled back into their coffers because the financial system (that has NOTHING to do with capitalism whatsoever) is designed to exploit the many in favor of the few: In 2015, the United States government spent $223 billion in tax dollars just to service the national debt. The trend of wealth concentration continues unabatedly and continues to be the wealthiest bunch's best friend.

I wonder how the neoliberal commenters here forgot to mention the trickle down effect that ensures an additionl layer of natural justice. After all, they need servants in quantity to enjoy their wealth to the fullest degree.

Appendix:

As to the billionaires, I distinguish between class A- billionairs, founders like Ellison, Gates, Jobs  - who deserve every single penny of their wealth and are entitled to do with it what they want - and class B - billionairs - parasites like Buffett, Romney, and the whole bunch of PE-, LBO-, Hedge Fund- (hedge against what?) and whatever managers, and of course class C billionaires, the worst of all, the banker devils like Cohn, Blankfein, Dimon - who rob their wealth from us.

Of course, the looting mob will not smash the villas of class B and C parasites (and the politicians who live with them in symbiosis) but the windows of small shops in the search for the newest overpriced sneakers or flatscreen TVs.

Hope that helps.