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WASHINGTON -- The share of the nation's wealth held by the less affluent half of American households dropped precipitously after the financial crisis, to 1.1 percent, according to new calculations by Congress's nonpartisan research service.
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Another staggering indicator of the concentration of wealth at the top in the U.S: When all household wealth is divided by the number of households, the mean household net worth in 2010 totals $498,800. But the median household net worth -- the level at which half the households have more and half have less -- was $77,300, meaning that the rich have so much that the average net worth in the U.S. is actually 6.5 times that of a typical American family.
So where we headed? Plutocracy? Banana republic? Collapse? When do we get the guillotines out?
So where we headed? Plutocracy? Banana republic? Collapse? When do we get the guillotines out?
It's 2012, not 1790. That's not going to happen. If the poor rise against the rich, the rich have the resources and the capability to strike them all down.
Their only worries are rouge operators that they have no control over, but there is a solution.
Eliminate cash and instead, require us all to pay with debit cards or credit cards.
Net worth is assets - liabilities.
With a consumer nation that spends and doesn't save there's not much in the way of wealth for many Americans.
I posted this in another thread but personal savings has been on a decline since the mid-80's when we moved to a consumer based economy and Americans started spending more than they were saving.
Buying the latest iPhone is not investing in an asset and won't add to your wealth.
While my friends and peers bought their new cars, McMansions and designer clothes, I bought stocks, bonds and land.
My youngest daughter and her husband live in a very tight budget but you know what - they still make it a priority to save each month. I bet they won't stay in that lower percentile their entire lives.
It's usually not simply a case of "da man holdin' a brutha down." Personal choices and priorities play a big part in the accumulation of wealth.
Not only that but you have to look at the ages of households too. Young households naturally wouldn't have accumulated many true assets. These are accumulated over time - and usually require some personal sacrifice on a regular basis to acquire.
For instance - housing. Today's first time homebuyers seem to think they have to buy a house that's the equivalent, or better, of the house their parents live in. A two bedroom, one bath starter home are simply NOT GOOD ENOUGH, no, not for these thirty year olds. Down payment? Mom and Dad will give it to them, and if not - well, who needs a down payment?
It's 2012, not 1790. That's not going to happen. If the poor rise against the rich, the rich have the resources and the capability to strike them all down.
Their only worries are rouge operators that they have no control over, but there is a solution.
Eliminate cash and instead, require us all to pay with debit cards or credit cards.
So where we headed? Plutocracy? Banana republic? Collapse? When do we get the guillotines out?
There won't be any rebellion because the have-nots have been conned into thinking that the division of wealth is in their own best interests.
Note: Mitt Romney, who most publicly represents that division of wealth, has the strongest support among white men without a college education. In other words, the people most likely to vote for him are those very ones who hold the least of our nation's wealth!
Net worth is assets - liabilities.
With a consumer nation that spends and doesn't save there's not much in the way of wealth for many Americans.
I posted this in another thread but personal savings has been on a decline since the mid-80's when we moved to a consumer based economy and Americans started spending more than they were saving.
Buying the latest iPhone is not investing in an asset and won't add to your wealth.
While my friends and peers bought their new cars, McMansions and designer clothes, I bought stocks, bonds and land.
Right on.
When my friends were buying their first house - zero down, new construction, 2500 square feet, four bedrooms (I mean, we've GOT to have one bedroom for each child - and of course a home office too - and three bathrooms because we wouldn't want a guest to have to use the kids' bathroom!) - I was buying a 1300 square foot house and putting $25,000 down.
I drive vehicles for about 8 years. I keep a phone till it just won't work anymore.
When I was in my twenties, I actually went THREE YEARS without buying a soda. This wasn't for health reasons (though it probably isn't a bad idea!) - sodas were a luxury item and one I could cut out, so I did. Eating out was a rarity - I mean, like once or twice a month. My kids never did know what a "Happy Meal" was. We'd find these bags of useless Happy Meal toys at garage sales and they'd say, "These are weird little things - where do they come from?"
Speaking of garage sales - we hit them often. Back to school shopping? We'd go to Goodwill and other thrift shops first. We didn't have cable TV.
It's not that we couldn't afford these things - but we couldn't afford them if we were going to SAVE MONEY and STAY OUT OF DEBT.
This way they can elminate black market purchases. I imagine there are computer systems sophisticated enough to put everybody's transactions in some sort of categorical database which will send an alert if an individual is making a number of suspicious purchases, (IE materials for weapon systems), although I suppose you could bypass this by having a number of individuals make seperate purchases.
If this is the case, I imagine that the same systems can track an individuals browsing history and other actions that can categorize them and link them with potential "threats."
In this day in age, this may be necessary to prevent terrorism, but it's a double edged sword. If there is no publically accessable alternative to oil, eventually the price will be too high for global economies to function, which will probably result in a steady decline into chaos.
To maintain order, these systems will be deemed necessary. Maybe...I don't know. I'm just guessing.
Net worth is assets - liabilities.
With a consumer nation that spends and doesn't save there's not much in the way of wealth for many Americans.
I posted this in another thread but personal savings has been on a decline since the mid-80's when we moved to a consumer based economy and Americans started spending more than they were saving.
Buying the latest iPhone is not investing in an asset and won't add to your wealth.
While my friends and peers bought their new cars, McMansions and designer clothes, I bought stocks, bonds and land.
Yep. Everyone should read "The Millionaire Next Door." The reason so many have such little wealth is because they make extremely poor life and financial decisions.
Quote:
Lesson #1: Income Does Not Equal Wealth
Yes, higher-income households tend to have more wealth than lower- and middle-income households. But the size of a paycheck explains only approximately 30% of the variation of wealth among households. What really matters is how much of the income is invested. On average, millionaires invest nearly 20% of their income.
There won't be any rebellion because the have-nots have been conned into thinking that the division of wealth is in their own best interests.
Note: Mitt Romney, who most publicly represents that division of wealth, has the strongest support among white men without a college education. In other words, the people most likely to vote for him are those very ones who hold the least of our nation's wealth!
Have we all become stupid, or what?
No, the have-nots can't afford their gadgets anymore and their CC's are maxed out and there's no more HELOCs.
The have-nots have run out of money and won't give up their lifestyles.
The have-nots are not the poor because they've always been poor so nothing has changed for them.
The have-nots are the middle class that are maxed out and refuse to acknowledge that they've been spending more than they have been bringing in.
In denial and looking for a scapegoat...just like our government.
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