Skip to comments.Wealthiest Americans prospered most since 1979, according to government study (AP barf alert)
Posted on 10/27/2011 4:39:22 AM PDT by WOBBLY BOB
WASHINGTON - The richest 1 percent of Americans have been getting far richer over the last three decades while the middle class and poor have seen their after-tax household income only crawl up in comparison, according to a government study.
After-tax income for the top 1 percent of U.S. households almost tripled, up 275 percent, from 1979 to 2007, the Congressional Budget Office found. For people in the middle of the economic scale, after-tax income grew by just 40 percent. Those at the bottom experienced an 18 percent increase.
"The distribution of after-tax income in the United States was substantially more unequal in 2007 than in 1979," CBO Director Doug Elmendorf said in a blog post. "The share of income accruing to higher-income households increased, whereas the share accruing to other households declined."
The top 1 percent made $165,000 or more in 1979; that jumped to $347,000 in 2007, the study said. The income for the top fifth started at $51,289 in 1979 and rose to $70,578 in 2007. On the other end of the spectrum, those in the 20th percentile went from $12,823 in 1979 to $14,851 in 2007.
The report, based on IRS and Census Bureau data, comes as the Occupy Wall Street movement protests corporate bailouts and the gap between the haves and have-nots. Demonstrators call themselves "the 99 percent."
(Excerpt) Read more at twincities.com ...
The article is accurate.
Let’s see how many corporate pimps show up to refute it.
How bout a study of congressional net worth over the same period.
As I understand it, Nancy Pelosi has increased her net worth some 2600% since becoming a congressman. Think about what that means. If she entered congress with a net worth of $100,000, she’s worth $26,000,000 today. (As I understand it, she was worth considerably more when she started)
In other news, fat people have a tendency to gain more weight than thin people, poor people make less money, and pretty girls get more dates.
I would actually presume it’s true.
Realize that this also implies that the middle and lower classes do worse under socialized society.
The degree of socialism has only increased in this country since 1979.
Even though socialism and communism tout that they improve the lives of lower classes by making things “financially fair”, that is just a b.s. marketing plan.
What really happens is that gov’t gets more and more of the public’s money and that money is doled out as the gov’t sees fit, not the people.
The corruption that ensues actually makes things economically worse for the lower class, in stark contrast to the stated purpose of the collectivist.
-——I would actually presume its true.——
wealth is a function of effort ...... laziness yields poverty or at best lower income.
Failure to be educated is a result of laziness and yields low wealth. A choice made to be lazy is hard to overcome and compounds with time
Umm, the wealthiest prosper because they’re wealthy.
Rather than envy what the rich have why don’t you aspire to be one of them. Assuming you’re reasonably bright and ambitious what’s stopping you? You do understand the money bucket has no bottom don’t you?
I agree. It is accurate. And it is as it should be.
The wealthy risk their capital and they reap the rewards. The poor spend theirs on big screen tvs, high top sneakers, bling for the car and other useless stuff (drugs, alcohol etc) that they don’t need and that doesn’t pay a return.
The rising tide has lifted the boats of even those who don’t contribute. Why should they be complaining that the people who do the economic heavy lifting are getting the reward?
When I was a kid every gas station was full service. That tells me that there must have been a much greater profit in owning a gas station prior to 1970.
Gas station owners didn’t suddenly become greedy and decide to pocket the money they were paying guys to pump gas. The gas station attendant disappeared because the profit was choked out of the industry. These days, gas stations make virtually no profit off gas and the only reason they have it is to draw customers into the store part of the business.
Lets see how many corporate pimps show up to refute it.
What is there to refute? Why would anyone want to refute it! Its a cause for celebration!
Those in the 20% percentile, that is high-school drop-outs, illegal aliens, sloven drug addicts and other no-achievers saw their incomes rise 18% despite the fact that most can easily be replaced by a robot! That is downright amazing that people who throw their lives away also see after-tax income rise. A rising tide raises all ships.
I am intrigued by your "corporate pimps" slur. Why are wasting your time in Free Republic when you should be browsing Mother Jones, HuffPo, Daily Kos and DU?
So you are sitting in front of a flat screen TV, stuffing your face with convenience foods and beer watching a Charles Schwab 'vert that has interrupted your daily dose of American Pole Dancer. Pause for a moment from hating your fellow American and ask yourself this question. If investing didn't produce any better results than shooting drugs in your arm and waiting for a welfare check, why would anyone risk their money?
If those who applied themselves since grade-school, struggled for their prestigious college degree, networked, built alliances, saved and worked eighty hour weeks, carefully studied the markets and trends and invested accordingly didn't see any benefit that couldn't have been gotten dropping out of high school punching a clock down at the mill and expecting the union to take of all of your life planning needs, why go through all the hassle?
Lets say Aaron and Bob both work down at the plant doing the exact same job at the exact same pay. Every day there is opportunity to work overtime which Aaron does, but Bob punches out and heads to the liquor store to buy booze and lottery tickets. Aaron, instead of taking vacations to Disney or upgrading his depreciating assets every time a new model comes out, plows his money into a REIT or risks it by lending it to a relative who begins what ends up a profitable business. According to you, we should ignore the different inputs and be egalitarian about the results. That is, Bob whose liver cirrhosis keeps him from enjoying much of a pension should have the same multi-million dollar nest egg as his far more productive co-worker Aaron.
If all you are concerned about is a desk job in an air-conditioned office with no stress, physical labor or hassles then become an unarmed security guard. That is the closest thing to a sinecure. But the pay sucks because everyone on the planet can do that gig, but how many people can cut open a stranger's head, pull out a tumor and have the patient wandering around on their own soon after?
The rich get richer because they keep making smart investment decisions. The poor aren't getting poorer no matter what serial F'd-up decisions they make.
That is the bottom line, so why are you bitching? Are you really that well programed by the Communists to Covet your neighbor's goods that you view success as a vice and sloth as noble?
This growing disparity is not good for the country. Its bad for small businesses and bad for main street.
Additionally the govt is killing the middle class w inflation, taxes, etc.
Can I see the “hours worked per year” numbers for the top 1% and the poor ... that will shed light on the premise underlying this BS article.
How does this study define “income”?
Do those receiving government aid from the myriad of programs have to declare that as income, or is all that ignored?
What is the expected outcome in a meritocracy?
Don’t we want the most productive to be the wealthiest and for them to continue to do better?
No one bothers to mention the explosion of initial public offerings on the varius stock exchanges. That phenomenon has made many individuals who have led startup corporations very very rich. It has also created millions of new job opportunities.
And we ought to remember where we were in those good old days of 1979....20% interest rates (if you could get a loan) and a ridiculously (then) high unemployment rate.
Regan’s question is the only good one...”Are you better off now than four years ago?”
I guess in your world Ronald Reagan didn’t starve the Soviet Union of US trade and Capital, he instead allowed our manufacturing and technology to be wholesale sent there to increase market opportunities for American multi corporations.
You cheer the forces of freedom and free enterprise getting into bed with the Communist Chinese? You must approve of trade deals such as those which allowed the Communists to steal our missile gyroscope technology. Before that acquisition the Commies couldn’t hit a target 1000 miles away. Now their ICBMs with our technology are on a par with our own. And that is but one of many examples.
What is conservative about that? Those who cheer the bottom line above national security and the welfare of fellow Americans are not conservatives. They are traitors...or just plain ignorant. Which are you?
Like I said Corporate pimps put profit above country.
That’s not just wrong, it’s dangerous to our national security.
Google “wage stagnation”.
This report has been the entire MSNBC programming schedule.
Mobility has stagnated.
Opportunity has been “out sourced”
American workers are forced to compete with communist prison labor in the job market. Trickle down failed. And here we are.
What makes you think this has to do with just Corporations? I see no surprise in this. It would be terrible if the rich did not get richer. So what? I hope they do. Unless you think .gov should take more of their money and give it to you. Once you save or make so much money I hope you are always getting richer. Otherwise our market is in the dumps. Let see someone at age 40 thiry years ago made and accumulated 2 million dollars. I hope it has increased at least 400% in thirty years. Unless they were stupid enough to spend every penny and not invest their money. This is pure propaganda for the masses.
Especially if you are a "Too Big To Fail" Bankster.
Not just Corporations but their political lackeys in Washington also.
Many people seem stuck on the fear of some sloth eating up their taxes as if the pittance spent on programs for the poor are more then a fraction of what the MIC spends on nation building wars and bringing democracy to places like Libia and Chad. But welfare is not the target is it. Social Security is. That is why the GOP is trying to redefine the program in the public mind as a welfare program. The GOP has gone off the rails.
You cheer the forces of freedom and free enterprise getting into bed with the Communist Chinese?
I agree with you that we don't share the same ideology.
I may be making the wrong assumption here, but it appears that you value ideology over humanity. I do cheer the forces of Freedom and Free Enterprise bringing untold prosperity to billions of people in Asia. I have traveled enough to know that there is the "Position of the Government" and there is the "Position of the People". When someone says "Iran wants to destroy Israel/US" it is treated as a universal statement of both the people and the government, when in fact it is talking about policies by some rulers, not necessarily the people. And in the case of Iran, its not the people who are itching for a war with Israel or the US - they mostly want to be left alone to pursue their own lives, not further the crack-pot agenda of lunatics who have managed to grab political power.
Dittos with China. "Management" has one set of goals, and that is to pursue the increased power of the State, whereas those in the fields, simply want what everyone else wants, to enjoy more wealth, leisure and personal pursuits.
Ultimately nearly everyone wants to accumulate more wealth and power. We each have our own way of getting there. Those who feel that power is their divine right and have no problem using force and violence to achieve it naturally gravitate to government positions as their vehicle. Lazy deadbeats empower those who promise to steal on their behalf. Those who haven't lost all of their character and virtue understand that Productivity is the key to their goals. Those who are flexible in their ethics will cheat and swindle others, while the honest will buckle down and serve their fellow man in exchange for their prosperity.
This paradigm is universal, its found in all nations, all people and all cultures. What is different is the government and the market environment. There has always been a tension between the oppressive, destructive and parasitic nature of government, and for the span of time, controlling the beast has been the cause of wars and strife. The free market, on the other hand, thrives with less government and is naturally Productive, Charitable and constructive.
In short, government destroys, free markets create.
It is believed by many that if you make the free market strong enough, that it will resist if not actually change oppressive governments. It looks to me, by your posts, that you don't share that belief. I'm not sold on it either, but even if the government doesn't change by the power of the strengthening market, one side benefit is certain - it improves the lives of those who are touched by the free market.
I care far more about people than the number of missile silos. Two generations have passed with numerous leaders of varying moral stability in control of ICBMs. We are all still here. What has indeed happened in the last two generations is that the poverty and squalor that marked the beginning of the 1900s has largely been eradicated at the end of the 1900s. Communism didn't make anyone better, but the Free Markets did, and the remnants of the Berlin wall is now decorative rock around a free person's garden.
I don't really understand the perverse linkage between the wealthy getting wealthier and how I need to be constantly scanning the skies for falling ICBMs from China, but surely you have made the connection - yet I promise I sleep better than you.
It isn't slogans of the Marxists "People Before Profits" or "Profits before People". Its "Let More People Profit".
Why is the “non-partisan” CBO coming out with these statistics at this time?
another Executive Order?
The goal of Capitalism is profit.
What is the goal of communism?
For one party the end all be all is the profit.
For the other party(communist)it(capitalism)is merely a means to an end. Our end. You seem to have found common cause with our enemy. Your rationalizations are lame, weak and dangerous.
You really believe a “free market” can exist within the ideology of communism? You are either deluded or you have studied very little political science. China is our buddy?
China Threatens to Use Financial Weapon Against America
On Monday, Peoples Daily, Chinas leading newspaper, stated it was time for Beijing to consider using its financial weapon against the United States.
The Communist Partys flagship publication suggested that the Chinese government directly link its purchases of US Treasury debt to Taiwan arms sales and require ratings agencies to downgrade the United States in order to force up interest paid to China. China should also launch limited trade sanctions against states whose representatives in Congress supportTaiwan. China-US relations will always be constrained by these people and will continue along a roller coaster pattern if China does not beat them until they feel the pain, the paper said.
The context for the stinging piece in the partys self-described mouthpiece may be proposed arms sales to Taiwan, but the general message is clear: China should use its holdings of American obligations to accomplish its many geopolitical aims. In fact, China has never wanted to use its holdings of US debt as a weapon, the paper noted. It is the United States that is forcing it to do so”.
Agreed! There is large mobility between quintiles; did the the study look at the “share” of income for the top quintile, or did it look at the wealth of the individual members of the top quintile, which changed radically over the last 30 years. Think how many millionaires came out of the original move from mini-computers to PCs in the 1980’s, or the dot.com millionaires of the 1990’s.
A more interesting question would be, “what percentage of the top quintile in 1979 was still in the top quintile in 2009?”
This report confirms what is going on.
The govt is screwing us royally! inflation, bailouts, too much FIRE economy, outsourcing, etc.
The problem is that our policies are a frigging disaster for everyone but people in finance or who work for the Govt. .
Oh, yes. Another thing that AP willfully missed in this is that the Gom't hasn't given them raises keeping up with the cost of livin'. The government is the man keepin' em down!!!
Tom Sowell and Walter Williams have both published plenty on mobility between the quintiles. They are both libertarian leaning economists but AP will ignore both of them because they are black. Liberal racists.
Fixed that for you.
How many in the bottom 10% in 2010 were also in the bottom 10% in 1979? LITERALLY - NONE.
Statistically true. You can look it up.
Factor in - inflation, birth/death, immigration, emigration and these statistics are utterly meaningless economically, but are instead intended to advance political agendas.
Cherry picking numbers isn’t accuracy. Lets see the same analysis for every year and not just the year they believe makes their case.
“A phenomenal amount of wealth has been stolen from the middle class. “
The VAST MAJORITY of federal and State spending is on lazy, good for nothing low income and no income types for welfare to buy votes. Corporations had nothing to do with that theft.
No one makes you over spend for homes, cars, credit cards, fashion clothes, fast food and the like.
No one tells you to glue yourself to the boob tube and watch Survivor style soap operas instead of enriching your brain with knowledge to provide a better life for yourself.
No one forces you to vote for the likes of Obama, RINOs, and Democrats that simply tax you more and more to give to welfare recipients and corporate donors.
No one forces you to fail to save or invest money, spending every penny paycheck to paycheck.
Those are the primary bad decisions the middle class makes that keep them where they are. Those they do not do those things usually rise up and do better.
Your knock on the middle class is bovine excrement.
In fact your entire post reeks of ignorance.
Undoubtedly free trade with China has destroyed the value of labor.
You’re just a pissed off little kid that wants everything for free and is jealous that someone else has something that you wanted.
I’ve got two very lib sisters who started as peons at a major corporation in the seventies and who are both now worth in excess of a million. Of course, nobody but the rich made any money during the last thirty years. (smirk)