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Top 1% Getting 95% of Income Gains: Is Washington Responsible?


KID

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A recent study reveals that the top 10% of earners in the
U.S. took home more than half the country’s total income in 2012. That's the
highest level recorded since the government began collecting the data a century
ago, according to a New York Times analysis.


 


 

The study by economists Emmanuel Saez and Thomas Piketty also found that the
top 1% of earners enjoyed 95% of the income gains since the recession ended.
Meanwhile, incomes for the rest of us stagnated from 2009 to 2011 and grew only
about 1% in 2012.


 

 

Why have incomes for most Americans hardly moved while those of the top
earners took off?


 

It could come down to that old adage: it takes money to make money.


 

“Excess capital that wealthy individuals and institutions had to
invest...[during the crisis] has allowed them to accumulate even more wealth
than others who didn’t have excess investment capital and are struggling in this
economy," Nomi Prins tells The Daily Ticker in the above video.


 

Prins is a
senior fellow at the non-partisan (but liberal-leaning) think tank Demos, a
former managing director at Goldman Sachs, and author of the upcoming All the Presidents' Bankers: The Hidden Alliances that Drive
American Power
.


 

She says wealthier Americans with cash to spare were able to snatch up
foreclosed homes during the crisis at bargain basement prices and collect gains
from the housing recovery that followed. Those without extra money could not
take advantage of those investment opportunities while struggling to just
get by, or keep their homes out of foreclosure.


 

Essentially the wealthy could better weather the crisis and capitalize on
it.


 

It's the more affluent Americans that have benefitted from “the recovery in
the stock market due to cheap money,” as Prins puts it. The richest 10% of
households own around 90% of the stock market, according to The New York Times.


 

Prins says many of the advantages that wealthy households have seen since the
crisis are due to policies coming out of Washington. That includes the Federal
Reserve’s zero-percent interest rate policy and government subsidies for the
banking system at its weakest point.

 


 

http://finance.yahoo.com/blogs/daily-ticker/top-1-getting-95-income-gains-washington-responsible-151332783.html
 

Edited by KID
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I think this "study" is aimed at the masses. It does not explain how business works or how owning a business differs from being an employee. It is becoming increasingly rare for employers to give out

So true what you have stated. So many whine about the upper 1% and how unfair it is that such a class exists. But for those who had the discipline to work hard, sacrifice and save instead of blowing t

Just more proof that the trickle down theory only works if the wealthy CHOOSE to let the wealth trickle down   And they don't   Thanks Ronnie

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and thats a bad thing we picked up a house that sold in 2005 for 165,000 in 2011 for 60,000 and its now selling for 110,000  sometimes you win and sometimes you loose life is a gamble 

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one of our members here really scored and i heard he now has 4 or more rentals in arizona ... they were giving away the houses 2 years ago 

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Knowdafish

I think this "study" is aimed at the masses. It does not explain how business works or how owning a business differs from being an employee. It is becoming increasingly rare for employers to give out large raises, yet it is fairly common for the net income of a company to rise which affords the business owner(s) and all the higher ups to get a significant raise. This does not take into account capital gains, which is another large source of income. 

 

It is difficult to "get ahead" by working for someone else, but if conditions are right it is a simple matter for the self employed. I would venture to guess that the vast majority of those in the upper 5% are self employed or are upper management that gain a significant part of their income when a business succeeds. 

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I think this "study" is aimed at the masses. It does not explain how business works or how owning a business differs from being an employee. It is becoming increasingly rare for employers to give out large raises, yet it is fairly common for the net income of a company to rise which affords the business owner(s) and all the higher ups to get a significant raise. This does not take into account capital gains, which is another large source of income. 

 

It is difficult to "get ahead" by working for someone else, but if conditions are right it is a simple matter for the self employed. I would venture to guess that the vast majority of those in the upper 5% are self employed or are upper management that gain a significant part of their income when a business succeeds.

So true what you have stated. So many whine about the upper 1% and how unfair it is that such a class exists. But for those who had the discipline to work hard, sacrifice and save instead of blowing their paycheck every Friday night, good on them. True enough few will advance as far as someone who doesn't work for someone else. God bless America for the opportunity to pursue success though it's becoming increasingly fashionable to bitch aand take from those who succeed and redistribute their wealth. And with that Obama's vision of a citizenry consisting of nothing more than a bunch of equal sheep lacking incentive gets a little closer with each passing day.
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Brucewayne

A recent study reveals that the top 10% of earners in the

U.S. took home more than half the country’s total income in 2012. That's the

highest level recorded since the government began collecting the data a century

ago, according to a New York Times analysis.

 

 

 

 

The study by economists Emmanuel Saez and Thomas Piketty also found that the

top 1% of earners enjoyed 95% of the income gains since the recession ended.

Meanwhile, incomes for the rest of us stagnated from 2009 to 2011 and grew only

about 1% in 2012.

 

 

 

Why have incomes for most Americans hardly moved while those of the top

earners took off?

 

 

It could come down to that old adage: it takes money to make money.

 

 

“Excess capital that wealthy individuals and institutions had to

invest...[during the crisis] has allowed them to accumulate even more wealth

than others who didn’t have excess investment capital and are struggling in this

economy," Nomi Prins tells The Daily Ticker in the above video.

 

 

Prins is a

senior fellow at the non-partisan (but liberal-leaning) think tank Demos, a

former managing director at Goldman Sachs, and author of the upcoming All the Presidents' Bankers: The Hidden Alliances that Drive

American Power.

 

 

She says wealthier Americans with cash to spare were able to snatch up

foreclosed homes during the crisis at bargain basement prices and collect gains

from the housing recovery that followed. Those without extra money could not

take advantage of those investment opportunities while struggling to just

get by, or keep their homes out of foreclosure.

 

 

Essentially the wealthy could better weather the crisis and capitalize on

it.

 

 

It's the more affluent Americans that have benefitted from “the recovery in

the stock market due to cheap money,” as Prins puts it. The richest 10% of

households own around 90% of the stock market, according to The New York Times.

 

 

Prins says many of the advantages that wealthy households have seen since the

crisis are due to policies coming out of Washington. That includes the Federal

Reserve’s zero-percent interest rate policy and government subsidies for the

banking system at its weakest point.

 

 

 

http://finance.yahoo.com/blogs/daily-ticker/top-1-getting-95-income-gains-washington-responsible-151332783.html

 

 

The media likes to :shit_stirrer: as things have been this way, or headed this way ever since the beginning of our country.

Anything else would be pure socialism and that is coming along at the same time as growing capitalism.

Thank goodness for our illusion of Democracy, as there would be no hope for the masses without said delusion.

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Just more proof that the trickle down theory only works if the wealthy CHOOSE to let the wealth trickle down

 

And they don't

 

Thanks Ronnie

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the top 10% of earners in the U.S. took home more than half the country’s total income in 2012

 

How much of the country's income was 'taken home' by able-bodied adult yahoos who made not the least attempt to do a thing to earn it? (And, yes, investing your money is doing something; and, no, applying for benefits is not.)

 

 

Just more proof that the trickle down theory only works if the wealthy CHOOSE to let the wealth trickle down And they don't

 

Yeah, that's not fair; they shouldn't be able to CHOOSE- that's not what America is about! The government should do something!

 

What's always glossed over in New York Times, etc. elitist propaganda is that the 'top' 10% changes constantly.

 

Note (despite the author's obvious word-mincing slant) that FEWER THAN HALF those born into the bottom or top income quintiles are stuck there:

 

With relative mobility, the picture is less clear. Figure 2 shows relative mobility by birth quintile. For each birth quintile, five bars describe the distribution of income rank as adults. For example, for all those born into the bottom quintile, 44% are still in that quintile as adults. About half as many, 22%, rise to the second quintile by adulthood. The percentages go down from there. Overall, children born into the bottom quintile are more likely to stay there.

Similarly, those born into the top income quintile are relatively likely to remain in the top. Among children born into the top quintile, 47% are still there as adults. Only 7% fall to the bottom quintile. The experiences of those born into the middle three quintiles are quite different. The distribution among income quintiles as adults is much more even for those born in these three middle groups, suggesting significant mobility for these individuals. For example, among those born into the third quintile, the one in the middle of the income distribution, only about 22% are still there as adults.

http://www.frbsf.org/economic-research/publications/economic-letter/2013/march/us-economic-mobility-dream-data/

 

Or, let me break it down for ya: fewer than half of rich kids end up rich and fewer than half of poor kids end up poor. Karl Marx (that idiot) wouldn't believe it.

 

America is still the land of choice and opportunity- despite the left wing fascists' constant attempts to ruin it and the America bashers to denigrate it.

 

Whining don't make no money.

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The gap between the rich and everyone else is wider today than the American people can possibly imagine, as is displayed in "Wealth Inequality in America," an infographic-heavy video that has been going viral since Friday, according to Mashable.

The video, which relies heavily on a well-read 2011 Mother Jones article, as well as information from CNNMoney and ThinkProgress, focuses on the stark divide between how Americans prefer the country's wealth to be divided, how they believe it to be divided and how it is actually divided. Find out more by watching the video yourself.

 

 

Edited by KID
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Why does it matter?

 

The linked video ASSERTS "this is better" or "this would be better" simply based on what average people think. Average people are idiots.

Edited by Cipro
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The gap between the rich and everyone else is wider today than the American people can possibly imagine

 

There are many gaps in the world, in life. The implication is that there is something bad going on that could or should be remedied. Surely no one with any perspective believes that a government being in charge of fill-in-the-blank would be an improvement. I submit that any 'solution' would have to be so draconian as to ultimately be intolerable- sort of like Obamacare- and, of course, would have to continue forever because even if all the wealth in the world were to be distributed evenly amongst humanity, within a short time it would be back in the hands of a few- wolves and sheep, you know.

 

And why on Earth keep on about America? Most of the rest of the world is where a few connected families own everything and the masses are poorer than dirt- like the Philippines. Those people would love to have our pitiful 'gap'. Sheesh.

 

 

Why does it matter?

The linked video ASSERTS "this is better" or "this would be better" simply based on what average people think. Average people are idiots.

 

Hey! I'm an average person!

 

It doesn't matter except to those with an agenda (put us in charge to fix this horrible thing) or to those who imagine themselves entitled to tell others what to do- busybodies we used to call them.

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The gap between the rich and everyone else is wider today than the American people can possibly imagine, as is displayed in "Wealth Inequality in America," an infographic-heavy video that has been going viral since Friday, according to Mashable.

The video, which relies heavily on a well-read 2011 Mother Jones article, as well as information from CNNMoney and ThinkProgress, focuses on the stark divide between how Americans prefer the country's wealth to be divided, how they believe it to be divided and how it is actually divided. Find out more by watching the video yourself.

 

 

Wow. The narrator of this little clip sure has a fruitier than fruity voice. What a tool. Wonder if he ever touched a girl. Perhaps if little Jonny paid more attention in school instead of shooting spitballs from the back of the classroom he'd be earning more money today. Wealth is something that's earned, yet today many think they're entitled to it just because someone else has more than they do. Fruitcake conveniently forgot to mention that the proportion of tax burden is just as unequally distributed as wealth is, hence the small percentage of the richest among us pay most of the income taxes collected.

 

Fortunately in the US those with talent and ambition are still able move upward despite the disgust that socialists harbor towards anyone who succeeds. Why should some CEO be making in a day what it takes you a year of two to make? Instead of whining about it, go start your own company, hire fruitcake voice while you're at it and give him an instant pay cut.

 

 

post-8010-0-34387700-1379363153_thumb.jpg

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And why on Earth keep on about America? Most of the rest of the world is where a few connected families own everything and the masses are poorer than dirt- like the Philippines

 

YEP---Glad we agree

 

AND if anyone bothered to watch the video you would see that more people are fitting into the "poor" category everyday while the middle class disappears

 

Maybe a few on this forum feel that America needs to be like the Philippines where an elite few have everything and the rest have NOTHING ???

 

 

proportion of tax burden is just as unequally distributed as wealth is, hence the small percentage of the richest among us pay most of the income taxes collected.

 

They may pay more DOLLARS but they don't pay as much PERCENTAGE out of their paychecks as they average working person in America therefore They DO NOT PAY as much of their income in taxes as the Average worker

Edited by KID
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I suspect that the legal climate in the USA promotes this by squelching small businesses under acres of regulations.

 

tl;dr - Government is the problem not the solution.

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