Skip to comments.For 99% of Americans, the Obama recovery has been no recovery at all
Posted on 03/05/2012 1:18:06 PM PST by Nachum
Liberal economist Emmanuel Saez has updated his much-referenced income inequality research. Heres how the recovery is going after the Great Recession:
In 2010, average real income per family grew by 2.3%, but the gains were very uneven. Top 1% incomes grew by 11.6% while bottom 99% incomes grew only by 0.2%. Hence, the top 1% captured 93% of the income gains in the first year of recovery. Such an uneven recovery can help explain the recent public demonstrations against inequality. It is likely that this uneven recovery has continued in 2011 as the stock market has continued to recover.
National Accounts statistics show that corporate profits and dividends distributed have grown strongly in 2011 while wage and salary accruals have only grown only modestly. Unemployment and non-employment have remained high in 2011.
This suggests that the Great Recession will only depress top income shares temporarily and will not undo any of the dramatic increase in top income shares that has taken place since the 1970s. Indeed, excluding realized capital gains, the top decile share in 2010 is equal to 46.3%, higher than in 2007.
Looking further ahead, based on the US historical record, falls in income concentration due to economic downturns are temporary unless drastic regulation and tax policy changes are implemented and prevent income concentration from bouncing back. Such policy changes took place after the Great Depression during the New Deal and permanently reduced income concentration until the 1970s.
1. So this isnt exactly an endorsement of the Obama recovery is it? I mean, for 99% of Americans there has been no recovery, according to Saez. In other news, Wall Street paid its employees more than $40 billion in bonuses the past two years.
(Excerpt) Read more at blog.american.com ...
I am the 99% LOL!
The list, Ping
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This is the major story of the Obama administration...and it’s one the media will not cover.
but, hey, at least some poor, struggling students at an elite college will have their free birth control...
That’s what I don’t understand. Is this guy saying that OWS/”We are the 99%!” people are actually *correct*? Am I supposed to get mad at the people who HAVE managed to make this economy work for them? Because most of THEM are not Democrats.
What am I, supposed to become a Democrat?
And 99% of Americans should let the Hair Ball-in-Chief know that next November!
Thomas Sowell has pointed out that a very substantial part of the disparity between the top and bottom income quintiles disappears if you control for age. IOW, the bottom income quintile is loaded with young people just starting out. He calls the liberal assumption that all low-income people are stuck in poverty for a lifetime the wino veto - suggesting that the few people who remain in the bottom quintile for most of their lives are, or might as well be, winos.
Agreed, my standard of living has gone down from 2008. The only bright spot, I did get a newer vehicle but my elderly father had to give me a hand. B-P It’s been nip and tuck.