2016 Postmortem
Related: About this forum… And the Poor Get Poorer
The Federal Reserve just released its Survey of Consumer Finances, the only government survey of wealth in America. The Survey is conducted every three years. This survey, conducted in 2010, is the first one to reflect the effects of the Wall Street Meltdown in 2008.
How does it look? Bad. Really, really bad.
The median wealth of American families (meaning half above and half below) dropped from $126,400 in 2007 all the way down to $77,300 in 2010. That's a 39% slide. It puts the median net worth of American families at its lowest level since 1995, fifteen years earlier.
About 12% of American families have a negative net worth. Meaning that they're broke.
Among Americans with no high school diploma (15 percent of the adult population), median wealth plunged from $34,800 in 2007 to $16,100 in 2010, a 54% drop. That is the lowest level since at least the Fed's 1983 survey, maybe earlier. So three decades of progress have been wiped out.
Among minorities, median wealth plunged from $29,700 to $20,400. That is the lowest level since 1992. White median wealth is now 540% higher than minority median wealth.
The median value of American homes dove from $209,500 in 2007 to $170,000 in 2010. But the median mortgage was almost completely unchanged: $74,700 in 2007, $74,100 in 2010. So debt payments increased from 7% of income to 11% of income.
In 2007, the bottom 25% had a net worth of $14,800 or less. In 2010, the bottom 25% had a net worth of $8,300 or less, a 44% decline.
In 2007, the top 10% had a net worth of $955,600 or more. In 2010, the top 10% had a net worth of $952,500, a decline of less than 1%.
Let me sum it up for you: In the greatest economic crisis that the United States has faced since the Great Depression, the rich barely lost a nickel. But the poor definitely got poorer. And people in the middle were crushed.
If this continues any longer, then we can invite a priest to administer last rites to the American Middle Class.
Courage,
Alan Grayson
jannyk
(4,810 posts)geardaddy
(24,936 posts)Thanks!
senseandsensibility
(17,260 posts)and that's after we bailed them out. Thanks for reminding everyone, and for keeping up the good fight!
The Wizard
(12,556 posts)does the working class figure out who's been trickling down on them?
Javaman
(62,540 posts)The Wizard
(12,556 posts)a permanent underclass, in essence a return to lords and serfs.
Golden parachutes for the wealthy elites and golden showers for the working class.
xxqqqzme
(14,887 posts)financial movement realized during Clinton's tenure was completely and utterly wiped out by the dumbya rethuglicans. That's what happened to my family and, I suspect, millions of others.
mother earth
(6,002 posts)hard to keep their tax cuts.
Thank you, AG, you are one of the people's lone voices. K & R
SunSeeker
(51,831 posts)LittleGirl
(8,292 posts)Mr Grayson,
Thank you for your voice. My husband and I are looking abroad to retire, and now. He got his pink slip last month and has about 5 months of work before we lose his income and health insurance. So we're going to hope for a job here but if one doesn't come, we're leaving the country. Oddly enough, he will be sworn in as a citizen next week but we are thinking of going to the UK where he grew up. He has connections there and thankfully, they have single payer health care. At least we won't go bankrupt getting sick as long as we can unload this house.
Cheers.
shcrane71
(1,721 posts)LittleGirl
(8,292 posts)Americans can get that in their home country.
Thank you. I know I'm lucky.
Good Luck, good thoughts.
shcrane71
(1,721 posts)ErikJ
(6,335 posts)Beacool
(30,254 posts)idwiyo
(5,113 posts)Douglas Carpenter
(20,226 posts)freshwest
(53,661 posts)bigjimlarkin
(3 posts)This pattern is reflected here in Ireland. We have had the biggest depression since the foundation of the state 90 years ago. Budgets/ bailouts/ austerity are the order of the day. Unemployment is running at 14% and the national debt (due to a stupid state guarantee issued to all bank debt in 2008) swarfs GDP/GNP. So who is paying? Well takes on teh rich remian low by european standards with no increases at all throught the now 4 year crisis. Tax loopholes for the super rich remain and in fact British and European celebrities and becoming resident here due to the ridiculously low tax rates applyng. Meannwhile the middle classes arebeing stretched to and beyond breaking point and the working classes - well they just don't have work anymore.
So...............in Ireland too..............the rich get richer while everybody else becomes impoverished cleaning up their gambling/banking debts while they just laugh at us
NRaleighLiberal
(60,041 posts)in fact, we landed at Shannon just a few hours before the planes hit the buildings on 9/11 - our daughter was there on a study abroad. We will never forget the kindness and hospitality of everyone there during an emotionally difficult time. (our favorite part was Dingle!)
bigjimlarkin
(3 posts)that was a tough time to come but the Irish feel a real afinity towards the US and of course several Irish people were murdered in those atrocities too
Dingle is still beautiful - and rainy! - but the national spirit is well down due to this economic disaster and what it has done to our country. We're effectively enslaved now to german imperialists (don't get me started lol)
anyway maybe you'll get back again, glad you enjoyed
former9thward
(32,181 posts)Considering how many have high credit card debt.