Trickle Down Economics? More Like Trickle Away Economics!

[Fearless]

A new US Census Bureau (study) shows that the median household's net worth fell from $106,591 to $68,839 from 2005 to 2011:




That's one of many astounding facts in the report, which focuses on changes in household wealth. For example, it also found that the median net worth of the top 20 percent divided by the median of the second 20 percent was 39.8 in 2000. Today, it's 86.8.

In addition, the latter group lost nearly 56 percent of its wealth. And the overall wealth of the bottom 20 percent fell from -$915 to -$6,029. Or, put another way, the median American in that poorest group saw their debt increase more than 6 and a half fold.

While people in the top 40 percent lost a fair-sized chunk of assets in the downturn, they are currently above where they were in 2000. Meanwhile, the median household in the middle quintile is still worse off than they were then. In the second quintile, the median household only has half the wealth it did in 2000. And the bottom quintile's median household is far deeper in debt.

http://www.vox.com/2014/8/23/6057467/middle-class-households-wealth-fell-35-percent-from-2005-to-2011


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[okaawhatever]

1. While the current income and wealth situation is unfair and grossly skewed towards the top 1%, many

of these numbers are a direct result of the fall in the housing market (which is starting to turn around, but hadn't as of 2011). By focusing on those years, and overall wealth (which was reduced by people taking money out of stocks, bonds and 401k when they were unemployed) I think this article misses the bigger picture. We should be focusing more on where NEW income is going and how that will grow exponentially for the top 1% but not for everyone else. How the current laws and tax structures are benefiting corporations over the workers, and the politicians who are being elected with huge donations from the same corporate sources.

Looking back tells us bad things happened. We know that. It's too easy to push those numbers aside as a product of the recession. The fact that the laws ensure middle America won't participate in the recovery is where the bigger concern lies. The fact that the republican party is in power in both houses as a direct result of massive corporate donations and policies that economically favor those same corporations is the bigger concern. How new income is divided up is something we can address today, but something has to be done soon.

[Fearless]

2. The point is to show that what we've done for economic policy does not work

It also reinforces the theory that this generation will be doing worse than the last one. It is the data we need to point to when people suggest that we're doing well under Republican economic policy.

[Gothmog]

3. Supply side economics do not work

The supply side theories have been proven false. Just look at Kansas and Wisconsin for proof

[Fearless]

4. Agreed 100%!