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Alan Grayson

(485 posts)
Thu Jun 14, 2012, 11:37 AM Jun 2012

… 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

22 replies = new reply since forum marked as read
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… And the Poor Get Poorer (Original Post) Alan Grayson Jun 2012 OP
K&R jannyk Jun 2012 #1
I just posted the picture from your email. geardaddy Jun 2012 #2
The rich barely lost a nickel senseandsensibility Jun 2012 #3
At what point The Wizard Jun 2012 #4
when fox news goes off the air. nt Javaman Jun 2012 #9
Realizing the Republican dream The Wizard Jun 2012 #5
So all the upward xxqqqzme Jun 2012 #6
The rich barely lost a nickel, which is why wealthy politicians are looking the other way & working mother earth Jun 2012 #7
K&R SunSeeker Jun 2012 #8
Sad isn't it? LittleGirl Jun 2012 #10
You're so lucky. I envy your ability to retire in a country with single payer. nt shcrane71 Jun 2012 #14
I seriously hope someday, somehow LittleGirl Jun 2012 #19
Thanks. Good luck and good thoughts for you also. shcrane71 Jun 2012 #20
Here's the chart for 2001 2004 and 2010 comparisons ErikJ Jun 2012 #11
I'm too damn depressed to even comment on this article. Beacool Jun 2012 #12
K&R. n/t idwiyo Jun 2012 #13
knr Douglas Carpenter Jun 2012 #15
My income is so low compared to any of those numbers, it's a miracle I'm still alive. freshwest Jun 2012 #16
SAME PATTERN IN EUROPE bigjimlarkin Jun 2012 #17
Welcome to DU. My wife and I were in Ireland in 2001 - NRaleighLiberal Jun 2012 #21
Thanks for that....... bigjimlarkin Jun 2012 #22
I am surprised only 12% have a negative net worth. former9thward Jun 2012 #18

senseandsensibility

(17,260 posts)
3. The rich barely lost a nickel
Thu Jun 14, 2012, 11:47 AM
Jun 2012

and that's after we bailed them out. Thanks for reminding everyone, and for keeping up the good fight!

The Wizard

(12,556 posts)
5. Realizing the Republican dream
Thu Jun 14, 2012, 01:01 PM
Jun 2012

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)
6. So all the upward
Thu Jun 14, 2012, 01:09 PM
Jun 2012

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)
7. The rich barely lost a nickel, which is why wealthy politicians are looking the other way & working
Thu Jun 14, 2012, 02:17 PM
Jun 2012

hard to keep their tax cuts.

Thank you, AG, you are one of the people's lone voices. K & R

LittleGirl

(8,292 posts)
10. Sad isn't it?
Thu Jun 14, 2012, 02:39 PM
Jun 2012

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.

LittleGirl

(8,292 posts)
19. I seriously hope someday, somehow
Thu Jun 14, 2012, 07:44 PM
Jun 2012

Americans can get that in their home country.
Thank you. I know I'm lucky.
Good Luck, good thoughts.

bigjimlarkin

(3 posts)
17. SAME PATTERN IN EUROPE
Thu Jun 14, 2012, 07:27 PM
Jun 2012

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)
21. Welcome to DU. My wife and I were in Ireland in 2001 -
Thu Jun 14, 2012, 07:59 PM
Jun 2012

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)
22. Thanks for that.......
Thu Jun 14, 2012, 08:18 PM
Jun 2012

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

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