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The Typical Household, Now Worth a Third Less
NYTimes ^ | By ANNA BERNASEK | JULY 26, 2014

Posted on 07/26/2014 9:42:47 AM PDT by quesney

Economic inequality in the United States has been receiving a lot of attention. But it’s not merely an issue of the rich getting richer. The typical American household has been getting poorer, too.

The inflation-adjusted net worth for the typical household was $87,992 in 2003. Ten years later, it was only $56,335, or a 36 percent decline, according to a study financed by the Russell Sage Foundation. Those are the figures for a household at the median point in the wealth distribution — the level at which there are an equal number of households whose worth is higher and lower. But during the same period, the net worth of wealthy households increased substantially.

The Russell Sage study also examined net worth at the 95th percentile. (For households at that level, 94 percent of the population had less wealth and 4 percent had more.) It found that for this well-do-do slice of the population, household net worth increased 14 percent over the same 10 years. Other research, by economists like Edward Wolff at New York University, has shown even greater gains in wealth for the richest 1 percent of households.

For households at the median level of net worth, much of the damage has occurred since the start of the last recession in 2007. Until then, net worth had been rising for the typical household, although at a slower pace than for households in higher wealth brackets. But much of the gain for many typical households came from the rising value of their homes. Exclude that housing wealth and the picture is worse: Median net worth began to decline even earlier.

“The housing bubble basically hid a trend of declining financial wealth at the median that began in 2001,” said Fabian T. Pfeffer, the University of Michigan professor...

(Excerpt) Read more at nytimes.com ...


TOPICS: Business/Economy; Extended News
KEYWORDS:
And open borders with massive inflows of unskilled labor can only help
1 posted on 07/26/2014 9:42:47 AM PDT by quesney
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To: quesney

Notice the Slimes does not invite reader comment.


2 posted on 07/26/2014 9:43:39 AM PDT by skeeter
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To: quesney

The decline continues.

For all the talk about the ‘income gap’ Democrats are the ones accelerating it.

Bringing in illegals will further hurt blacks in particular. But they keep voting Democrat no matter what, so the leftists don’t care.


3 posted on 07/26/2014 9:44:31 AM PDT by TigerClaws
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To: quesney

This makes no sense. The average home cost over $300,000 and the average salary is around $70k so how can the average household only be worth $56K?


4 posted on 07/26/2014 9:45:25 AM PDT by SamAdams76
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To: skeeter

“Notice the Slimes does not invite reader comment.”

of course - why invite discussion over why it’s happening


5 posted on 07/26/2014 9:45:35 AM PDT by quesney (e)
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To: quesney

If you include the value of their govt benefits, the entitlement army is actually doing quite well these days.

Until the markets puke on the fake money used to pay these benefits, the party in America will rock on.


6 posted on 07/26/2014 9:46:22 AM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: skeeter

Of course they don’t. Especially these days when it always seems conservative thought dominate those comment boards. Most of the Left is silent there, save for the few that hang on to be outdone on comments 10 to 1.


7 posted on 07/26/2014 9:46:42 AM PDT by CommieCutter ("For an idea to be too simplistic, it must first be proven wrong" --Thomas Sowell)
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To: quesney
Mark Levin keeps harping on the necessity of middle class destruction before the Left can fully implement its social justice utopian hell.

We are just about there.

At least Levin offers solutions.

8 posted on 07/26/2014 9:47:22 AM PDT by Jacquerie (Article V. If not now, when?)
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To: quesney

If you are able to save steadily, you should have a 10% increase every year.

I have nearly tripled in this time period. The only year I was down was 2008.

Of course, the poor guys who lost their job in 2008 and never found another one are screwed.


9 posted on 07/26/2014 9:48:27 AM PDT by proxy_user
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To: SamAdams76

Well you remember back in the prosperous era of 2007?

The prosperous family had a McMansion with negative real equity and two leased luxury SUVs.

Sometimes things aren’t what they appear to be. Just like the financial condition of our fedgov.


10 posted on 07/26/2014 9:49:01 AM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
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To: SamAdams76

“This makes no sense. The average home cost over $300,000 and the average salary is around $70k so how can the average household only be worth $56K?”

I think a far lower percentage own their own homes.


11 posted on 07/26/2014 9:51:26 AM PDT by quesney (e)
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To: quesney
The Typical Household, Now Worth a Third Less

And you can thank socialist policies and the decline of the Christian work ethic.

Hooray for Progressives! Well on the way to completion of their goal: Destruction of liberty everywhere!

12 posted on 07/26/2014 9:51:47 AM PDT by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
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To: SamAdams76

“This makes no sense. The average home cost over $300,000 and the average salary is around $70k so how can the average household only be worth $56K?”

...and average income is in the 30k’s...and falling too...


13 posted on 07/26/2014 9:52:25 AM PDT by quesney (e)
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To: SamAdams76

They don’t own the home - the bank does.

And apparently they don’t save much.

Sad.


14 posted on 07/26/2014 9:52:48 AM PDT by yorkiemom ( "...if fascism ever comes to America, it will come in the name of liberalism." - Ronald Reagan)
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To: SamAdams76

People save nothing, they leverage these houses with 5% down payments and then borrow more against ‘equity’ from inflated appraisals.

The new ‘America’. I’ve got to have it NOW, and when the plan derails I’ll get a bailout.


15 posted on 07/26/2014 9:54:18 AM PDT by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
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To: LucianOfSamasota

“People save nothing, they leverage these houses with 5% down payments and then borrow more against ‘equity’ from inflated appraisals. The new ‘America’. I’ve got to have it NOW, and when the plan derails I’ll get a bailout.”

Yup - and bill it to the other guy - the one who doesn’t vote (kids, grandkids, China, etc.)


16 posted on 07/26/2014 9:59:29 AM PDT by quesney (e)
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To: SamAdams76
The average home cost over $300,000 and the average salary is around $70k so how can the average household only be worth $56K?

Credit. The average homeowner has a mortgage. His equity fluctuates in a levered fashion with real estate values.

17 posted on 07/26/2014 10:01:09 AM PDT by Pearls Before Swine
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To: quesney

Keep Obama in president you know! Gimmedat Obamaphone.


18 posted on 07/26/2014 10:03:48 AM PDT by Organic Panic
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To: quesney

Currently atop Drudge, right next to invasion of border headlines. I hope it stays there for awhile.


19 posted on 07/26/2014 10:04:19 AM PDT by Excellence (Marine mom since April 11, 2014)
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To: quesney

How much you want to bet it has gotten only worse since 2008?


20 posted on 07/26/2014 10:17:34 AM PDT by Jim from C-Town (The government is rarely benevolent, often malevolent and never benign!)
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To: quesney

I still notice a whole bunch of new cars being driven everywhere.


21 posted on 07/26/2014 10:50:30 AM PDT by lurk
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To: quesney

The subtle message in the article is class warfare so typical of Leftists.


22 posted on 07/26/2014 10:56:57 AM PDT by rockinqsranch ((Dems, Libs, Socialists, call 'em what you will. They ALL have fairies livin' in their trees.))
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To: SamAdams76

A 300K house with a 280K mortgage = 20K net worth

50K student loan debt, 30K car note, 10K in bank and 20K house equity is a negative net worth.


23 posted on 07/26/2014 11:24:34 AM PDT by tbw2
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To: quesney

24 posted on 07/26/2014 11:36:12 AM PDT by SoFloFreeper
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To: skeeter

25 posted on 07/26/2014 11:37:41 AM PDT by SoFloFreeper
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To: TigerClaws

26 posted on 07/26/2014 11:38:50 AM PDT by SoFloFreeper
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To: SoFloFreeper
Is that Dumbledore or Gandalf?
27 posted on 07/26/2014 11:39:14 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: yorkiemom

28 posted on 07/26/2014 11:39:27 AM PDT by SoFloFreeper
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To: CommieCutter

29 posted on 07/26/2014 11:41:27 AM PDT by SoFloFreeper
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To: skeeter

They don’t usually have reader comments at all on Saturday afternoons, since no moderators are working and there is no one to review the comments.

This is one of the drawbacks of pre-moderation.


30 posted on 07/26/2014 11:47:48 AM PDT by proxy_user
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To: quesney

36% less of a more worthless dollar...


31 posted on 07/26/2014 11:48:09 AM PDT by TalBlack (Evil doesn't have a day job.)
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To: TalBlack

bump


32 posted on 07/26/2014 11:49:22 AM PDT by GeronL (Vote for Conservatives not for Republicans)
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To: SamAdams76

My home is water front on Galveston Bay, it is worth maybe 200k, your 300k is BS.


33 posted on 07/26/2014 11:55:06 AM PDT by jpsb (Believe nothing until it has been officially denied)
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To: SoFloFreeper

You could just politely disagree.

I don’t want this scourge either.


34 posted on 07/26/2014 12:22:20 PM PDT by CommieCutter ("For an idea to be too simplistic, it must first be proven wrong" --Thomas Sowell)
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To: jpsb
My home is water front on Galveston Bay, it is worth maybe 200k, your 300k is BS.

You obviously don't understand the concept of average. Thus, some will be above $300k and some will be below. Yours happens to be below the average.

You sound bitter because your home is only worth $200k. Don't be jealous of others who do better with their properties.

35 posted on 07/26/2014 12:24:12 PM PDT by SamAdams76
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To: SoFloFreeper

Opps. Thought this was a different thread where I responded to you. My fault.


36 posted on 07/26/2014 12:24:43 PM PDT by CommieCutter ("For an idea to be too simplistic, it must first be proven wrong" --Thomas Sowell)
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To: SamAdams76

Because lots of people don’t own homes, lots have zero or negative equity in their homes and don’t save a dime.


37 posted on 07/26/2014 12:25:04 PM PDT by Kozak ("It may be dangerous to be America's enemy, but to be America's friend is fatal" Henry Kissinger)
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To: SoFloFreeper

He’s a Socialist (or a variation thereof) so what do you expect? Why does everyone pussyfoot round this issue?


38 posted on 07/26/2014 12:37:39 PM PDT by I am Richard Brandon
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To: SamAdams76

This is data for households — which includes young singles living alone who are scraping by on several part-time jobs and have no real assets, single mothers with children on the dole (likewise on the asset front), each counted as a household, the same as a well-off couple with two children — and is about net worth, not cash-flow, so mortgage balances count against the value of a home, and student loan balances count in the minus column. A newly minted brain surgeon fresh out of surgical residency might be bringing in $300K a year, but still be in the bottom half of the household net worth statistics due to student loan balances and a mortgage.


39 posted on 07/26/2014 4:43:45 PM PDT by The_Reader_David (And when they behead your own people in the wars which are to come, then you will know...)
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To: SoFloFreeper

I thought the debt was $17.5T.


40 posted on 07/26/2014 6:54:17 PM PDT by yorkiemom ( "...if fascism ever comes to America, it will come in the name of liberalism." - Ronald Reagan)
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To: SamAdams76
Prices also rose in every region of the U.S. in May, with the West seeing the largest gain. The Northeast median price rose to $256,700, up from April’s $244,600, although compared with the year before the price was down 0.9 percent.

In the Midwest the median price increased to $165,900, up from $155,900, and prices were up 4.0 percent from the previous year.

The South’s median price rose to $184,800 in May, an increase from $174,500 in April. Prices there are up 4.4 percent on a yearly basis.

In the West, the median price jumped to $297,500 from $289,600, with an 8.4 percent increase from a year earlier. Tight inventory in the West remains the driving factor in rising prices.

Source http://www.realestateabc.com/outlook/overall.htm

41 posted on 07/26/2014 9:51:50 PM PDT by jpsb (Believe nothing until it has been officially denied)
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