Skip to comments.Why Middle-Class Wealth Is Withering [Alinsky At Work: Destroy The Middle-Class and Destroy America]
Posted on 12/13/2014 10:16:14 AM PST by Steelfish
By AIMEE PICCHI December 12, 2014 Why Middle-Class Wealth Is Withering
If the middle class is truly the backbone of America, the country's spine may be close to breaking.
Middle America came out of the Great Recession in a precarious position, sinking into "dissavings" -- when spending is greater than income -- thanks to a nasty combination of stagnant wages and a hit to real estate and investment values, according to a new working paper from New York University economics professor Edward N. Wolff.
That's led to a grim outcome, with virtually no change in the country's median wealth between 2010 to 2013, even as asset prices, such as the stock market and housing values, rebounded in the years following the recession, Wolff wrote. The cause? "The high dissavings rate of the middle class," he noted.
d already suffered from several years of relatively stagnant wage gains. From 2007 to 2010, median income slumped almost 7 percent, and median wealth plunged by 44 percent.
So, with the recession over and the economy getting back on track, wouldn't Americans have benefited across the board? Not quite, the study found. While home values and stock prices gained, the middle class failed to see much lift because they fell into a dissavings rate of 9.9 percent relative to median income, eating into their assets to make up for stagnant wages.
"It appears that the middle class was depleting its assets to maintain its previous level of consumption," Wolff wrote. "The evidence, moreover, suggests that middle class households, experiencing stagnating incomes, expanded their debt (at least until 2007) mainly in order to finance normal consumption expenditures rather than to increase their investment portfolio."
(Excerpt) Read more at cbsnews.com ...
>>So, with the recession over and the economy getting back on track, wouldn’t Americans have benefited across the board?
Its not over for the middle class. We live off a stagnant paycheck, pay inflationary prices in an economy where economists only check the price on the box and not the weight and quality of the contents (the “hamburger-is-steak” rule), and really don’t reap the rewards of a Wall St that is fueled by a steady influx of fiat currency.
This is absolutely correct .. Mark Levin said, “You can’t have tyranny until you destroy the middle class”.
Guess what .. the Obama admin has been in the process of destroying the middle class since day ONE.
Glad to see somebody is taking notice besides me.
I told Boehner this a few years ago .. and I cautioned him then that his choices would determine whether we have America as founded, or a tyrannical govt.
Guess Boehner has chosen Tyranny. I sure hope the NEW CONSERVATIVES are up for the challenge.
And yet there are millions of people who believe Obama has been a failure. He’s been spectacularly successful in nearly every respect.
Remember that photo of him carrying the book Post-American World and how people mocked those of us who dared raise an eyebrow? I’d say it was more of a how-to book for him and his cronies than we realized at the time.
The fact that the author of that book is a proven plagiarist, makes this even more surreal.
>>If it’s over for the middle class, it is over for Wall Street and the rest of the county. Funny how whenever there is a push for socialism it always winds up with an unstable two class society in which most people are struggling.
The wealthy think that we’ll be compliant slaves, like Chinese workers, and they are planning to set themselves up as the Party Bosses, also like in China. The Gibsmedats believe that the Free Stuff gravy train will continue even after the middle class is gone.
“The Gibsmedats believe that the Free Stuff gravy train will continue even after the middle class is gone.”
You give them way to much credit. They can’t think that far ahead.
If they could then they would not be Gibsmedats.
“[Communism] is, in fact, man’s second oldest faith. Its promise was whispered in the first days of the Creation under the Tree of the Knowledge of Good and Evil: ‘Ye shall be as gods.’ It is the great alternative faith of mankind. Like all great faiths, its force derives from a simple vision.
Other ages have had great visions. They have always been different versions of the same vision: the vision of God and man’s relationship to God. The Communists vision is the vision of Man without God. It is the vision of man’s mind displacing God as the creative intelligence of the world.”
- Whittaker Chambers, Witness, p. 9.
This is what they intended to do, and they are succeeding. The essence of communism is that all money and all the means of production are in the hands of the collectivity. Not there yet, but going there rapidly.
>>You give them way to much credit. They cant think that far ahead.
Are you serious?? I’m not giving them ANY credit for thinking ahead. They’re animals who knew that a freebie was here today, so it will be there for eternity. They believe that the middle class if blocking them from getting Mo Free Stuff, so if we’re gone, then there’s more for them.
And corporate America has had nothing to do,with destroying the middle class?
Growing up, the middle class worked in factories and produced good for consumption. Now the corporate board looks and sees they can make $0.005 more per sprocket if they fire all the domestic staff, and ship production to China. Of course when every corporation does the same, there are fewer folks apple to buy those sprockets.
But keep on blaming only the democrats. When in reality, both parties have a part to play in this gutting of the middle class
Its the necessary result of progressivism. Big government, crony-capitalism, massive monetized debt all in the service of politics and social engineering
How much has the government grown in the same period of time,how about taxes and fees?
” This is absolutely correct .. Mark Levin said, You cant have tyranny until you destroy the middle class.
Guess what .. the Obama admin has been in the process of destroying the middle class since day ONE.”
Yes. And now he has partnered up with the leaders of the GOP.
Obamanomics is working perfectly, crushing the middle-class between increased taxation (including obamacare) and inflation as well as moving all manufacturing and customer service jobs offshore. As soon as the middle-class has shrunken to irrelevance, only the vast majority dependent on government handouts and a small number of the ultra-rich elite will be left to assure that national socialism is the operational form of government.
The Obama-Holder demagogues, the race-grievance industry, and most MSM and university employees want this to be a race issue.
I prefer to focus on jobs and wish a Reagan regardless of color had been elected in 2008.
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NOTE: Revisions to population controls and other changes can affect the comparability of labor force levels over time. In recent years, for example, updated population controls have been introduced annually with the release of January data. Information about historical comparability is online at www.bls.gov/cps/documentation.htm#comp. Number and Real Median Earnings of Total Workers and Full-Time, Year-Round Workers by Sex and Female-to-Male Earnings Ratio: 1960 to 2013
Earnings in 2013 CPI-U-RS adjusted dollars. Beginning with 2010, standard errors were calculated using replicate weights. Before 2010, standard errors were calculated using the generalized variance function. See Appendix C for more information. For information on confidentiality protection, sampling error, nonsampling error, and definitions, see
|Number of workers (thousands)||Median earnings (dollars)||Number of workers (thousands)||Median earnings (dollars)||Number of workers (thousands)||Median earnings (dollars)||Number of workers (thousands)||Median earnings (dollars)|
|Year||Total||With earn - ings||Value||Stan - dard error||Total||With earn - ings||Value||Stan - dard error||Total||With earn - ings||Value||Stan - dard error||Total||With earn - ings||Value||Stan - dard error|
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N Not available.
Who said I was blaming only the democrats ..??
I’m blaming the whole bunch of them.
The middle class worked in factories during WWII. But, after the war, the middle class became the “business starter” generation. And .. that is really what the middle class is still doing.
Most all SMALL businesses (who hire the majority of people) are more likely to be Republicans.
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