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Why Middle-Class Wealth Is Withering [Alinsky At Work: Destroy The Middle-Class and Destroy America]
CBSNews ^ | December 13, 2013 | AIMEE PICCHI

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 ...


TOPICS: Business/Economy; Chit/Chat
KEYWORDS: chambersquote; communism; middleclass; quote; whittakerchambers
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1 posted on 12/13/2014 10:16:14 AM PST by Steelfish
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To: Steelfish

>>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.


2 posted on 12/13/2014 10:20:00 AM PST by Bryanw92 (Sic semper tyrannis)
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To: Bryanw92
No it is not over, in fact it is just beginning with a new cover on an old book...


3 posted on 12/13/2014 10:24:32 AM PST by yoe
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To: Bryanw92
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.
4 posted on 12/13/2014 10:28:41 AM PST by pieceofthepuzzle
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To: Steelfish

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.


5 posted on 12/13/2014 10:29:47 AM PST by CyberAnt ("The hope and changey stuff did not work, even a smidgen.")
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To: Steelfish

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.


6 posted on 12/13/2014 10:31:41 AM PST by ChocChipCookie ("Demons run when a good man goes to war.")
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To: pieceofthepuzzle

>>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.


7 posted on 12/13/2014 10:33:58 AM PST by Bryanw92 (Sic semper tyrannis)
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To: Steelfish

8 posted on 12/13/2014 10:46:47 AM PST by Slyfox (To put on the mind of George Washington read ALL of Deuteronomy 28, then read his Farewell Address)
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To: Bryanw92

“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.


9 posted on 12/13/2014 10:49:32 AM PST by crusher2013
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To: Steelfish
"From 2007 to 2010, median income slumped almost 7 percent, and median wealth plunged by 44 percent."

The author of this piece will probably be fired and then audited by the IRS. The MSM theme is that unemployment has fallen dramatically, the stock market is soaring, so everything is wonderful, and Obama gets all the credit.
10 posted on 12/13/2014 10:54:03 AM PST by Steve_Seattle
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To: Steelfish

“[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.


11 posted on 12/13/2014 10:55:29 AM PST by donna (Pray for revival.)
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To: Steelfish

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.


12 posted on 12/13/2014 10:56:08 AM PST by I want the USA back (Media: completely irresponsible. Complicit in the destruction of this country.)
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To: crusher2013

>>You give them way to much credit. They can’t 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.


13 posted on 12/13/2014 10:56:35 AM PST by Bryanw92 (Sic semper tyrannis)
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To: CyberAnt

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


14 posted on 12/13/2014 11:07:12 AM PST by SengirV
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To: Steelfish

Its the necessary result of progressivism. Big government, crony-capitalism, massive monetized debt all in the service of politics and social engineering


15 posted on 12/13/2014 11:12:42 AM PST by PGR88
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To: Steelfish

How much has the government grown in the same period of time,how about taxes and fees?


16 posted on 12/13/2014 11:20:36 AM PST by ballplayer
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To: CyberAnt; All

” 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.”

Yes. And now he has partnered up with the leaders of the GOP.


17 posted on 12/13/2014 11:26:44 AM PST by stephenjohnbanker (The only people in the world who fear Obama are American citizens.)
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To: Steelfish

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.


18 posted on 12/13/2014 11:59:41 AM PST by catnipman (Cat Nipman: Vote Republican in 2012 and only be called racist one more time!)
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To: Steelfish
a growing racial wealth divide

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.

Most-Requested CPS Tables. Choose: Employment status of the population, 1940s to date

HOUSEHOLD DATA
ANNUAL AVERAGES
1. Employment status of the civilian noninstitutional population, 1943 to date

[Numbers in thousands]

Civilian labor force
Employed Unemployed
Year Civilian
noninstitutional
population
Total Percent
of
population
Total Percent
of
population
Agri-
culture
Nonagri-
cultural
industries
Number Percent
of
labor
force
Not
in
labor
force
Persons 14
and over
1943 94,640 55,540 58.7 54,470 57.6 9,080 45,390 1,070 1.9 39,100
1944 93,220 54,630 58.6 53,960 57.9 8,950 45,010 670 1.2 38,590
1945 94,090 53,860 57.2 52,820 56.1 8,580 44,240 1,040 1.9 40,230
1946 103,070 57,520 55.8 55,250 53.6 8,320 46,930 2,270 3.9 45,550
1947 106,018 60,168 56.8 57,812 54.5 8,256 49,557 2,356 3.9 45,850
Persons 16
and over
1947 101,827 59,350 58.3 57,038 56.0 7,890 49,148 2,311 3.9 42,477
1948 103,068 60,621 58.8 58,343 56.6 7,629 50,714 2,276 3.8 42,447
. . .
1979 164,863 104,962 63.7 98,824 59.9 3,347 95,477 6,137 5.8 59,900
1980 167,745 106,940 63.8 99,303 59.2 3,364 95,938 7,637 7.1 60,806
1981 170,130 108,670 63.9 100,397 59.0 3,368 97,030 8,273 7.6 61,460
1982 172,271 110,204 64.0 99,526 57.8 3,401 96,125 10,678 9.7 62,067
1983 174,215 111,550 64.0 100,834 57.9 3,383 97,450 10,717 9.6 62,665
1984 176,383 113,544 64.4 105,005 59.5 3,321 101,685 8,539 7.5 62,839
1985 178,206 115,461 64.8 107,150 60.1 3,179 103,971 8,312 7.2 62,744
1986 180,587 117,834 65.3 109,597 60.7 3,163 106,434 8,237 7.0 62,752
1987 182,753 119,865 65.6 112,440 61.5 3,208 109,232 7,425 6.2 62,888
. . .
2006 228,815 151,428 66.2 144,427 63.1 2,206 142,221 7,001 4.6 77,387
2007 231,867 153,124 66.0 146,047 63.0 2,095 143,952 7,078 4.6 78,743
2008 233,788 154,287 66.0 145,362 62.2 2,168 143,194 8,924 5.8 79,501
2009 235,801 154,142 65.4 139,877 59.3 2,103 137,775 14,265 9.3 81,659
2010 237,830 153,889 64.7 139,064 58.5 2,206 136,858 14,825 9.6 83,941
2011 239,618 153,617 64.1 139,869 58.4 2,254 137,615 13,747 8.9 86,001
2012 243,284 154,975 63.7 142,469 58.6 2,186 140,283 12,506 8.1 88,310
2013 245,679 155,389 63.2 143,929 58.6 2,130 141,799 11,460 7.4 90,290

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

Table A-4. 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 (People 15 years and older beginning in 1980 and people 14 years and older as of the following year for previous years. Before 1989, earnings are for civilian workers only.

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

Total Workers Full-time, Year- Round Workers
Male Male Female Female Male Male Female Female
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
20131 83,605 83,555 39,903 437 74,598 74,545 27,736 364 60,781 60,769 50,033 246 45,081 45,068 39,157 363
2012 83,070 83,003 38,467 420 74,252 74,188 27,273 139 59,028 59,009 50,116 474 44,059 44,042 38,340 366
2011 81,418 81,366 38,675 172 73,178 73,094 27,499 137 58,014 57,993 49,924 491 43,702 43,683 38,444 160
20102 80,893 80,856 39,300 170 72,789 72,716 28,316 140 56,294 56,283 51,231 522 43,184 43,179 39,411 156
20093 81,979 81,934 39,457 128 73,063 72,972 28,269 101 56,072 56,053 51,181 160 43,253 43,217 39,399 114
2008 84,088 84,039 39,563 116 74,600 74,538 27,751 105 59,875 59,861 50,165 157 44,163 44,156 38,673 115
2007 84,532 84,482 41,159 119 74,382 74,295 29,073 102 63,000 62,984 50,684 169 45,640 45,613 39,436 115
. . .
198711 69,624 69,545 38,875 284 59,557 59,359 20,832 137 47,048 47,013 50,895 212 29,982 29,912 33,172 155
1986 68,783 68,728 38,087 282 57,932 57,686 20,311 168 45,912 45,912 51,216 219 28,493 28,420 32,916 172
198512 67,852 67,809 36,706 279 56,592 56,296 19,258 194 44,952 44,943 49,952 291 27,470 27,383 32,257 169
198413 66,513 66,454 36,358 203 55,596 55,226 18,525 179 43,836 43,808 49,581 254 26,587 26,466 31,562 186
1983 65,216 65,138 35,726 196 53,413 53,108 18,294 133 41,548 41,528 48,639 222 25,288 25,166 30,931 189
1982 64,827 64,730 35,631 202 52,299 51,820 17,814 130 40,135 40,105 48,851 206 23,845 23,702 30,163 204
1981 65,362 65,233 37,014 211 52,504 51,940 17,749 128 41,811 41,773 49,791 174 23,488 23,329 29,494 123
1980 64,861 64,730 37,712 261 51,988 51,448 17,829 145 41,923 41,881 50,096 253 23,025 22,859 30,138 132
197914 64,769 63,422 38,720 260 51,462 49,839 17,874 153 42,469 42,437 50,878 200 22,248 22,082 30,355 156
. . . .

N Not available.

19 posted on 12/13/2014 12:40:07 PM PST by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: SengirV

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.


20 posted on 12/13/2014 1:30:22 PM PST by CyberAnt ("The hope and changey stuff did not work, even a smidgen.")
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