And the Fed has blown such an enormous bubble in the Stock Market and pockets of real estate that they dare not raise interest rates at all because when they do there WILL be a market correction and they cant have their family and friends on Wall Street sharing in the tiniest bit of the pain that the rest of us, and my retired parents, have been feeling since the bailout. The market has failed due to Fed Policy. When bad news is good news for the market because the Fed will keep rates at zero for a bit longer you know there is a massive distortion. This is why Trump is resonating.
2
Get used to it people...Obama is pushing to pass TPP, un-examined, over the break, more jobs head overseas, price of medicines go up some more, bonuses all around in Corp HQ's.
Hillary or Trump will get elected President with your votes, then all the TV camera lights will be switched off and the news reporters quit interviewing "regular folk," go back to snoozing and the beat goes on. Hillary or Trump will go back to doing the easy stuff and blame the other political party for the "gridlock." What? you think something different is really going to happen? Walmart is hiring...
Hillary or Trump will get elected President with your votes, then all the TV camera lights will be switched off and the news reporters quit interviewing "regular folk," go back to snoozing and the beat goes on. Hillary or Trump will go back to doing the easy stuff and blame the other political party for the "gridlock." What? you think something different is really going to happen? Walmart is hiring...
3
Of course if you work in rises in tax benefits, after tax income has actually risen from earlier levels.
This is a sad attempt to deflect from the news that America knew was around the corner when they elected Obama to a send term over "choker' and Mr. "Take a loan from your parents and start a business - you moochers" Romney.
This is a sad attempt to deflect from the news that America knew was around the corner when they elected Obama to a send term over "choker' and Mr. "Take a loan from your parents and start a business - you moochers" Romney.
2
Data based on estimates from surveys done by the census bureau rather than the legally reported incomes reported to the IRS? Hummmm?
From page 21 of the census report.....
"How Income Is Measured:
For each person 15 years and older
in the sample, the Annual Social and
Economic Supplement (ASEC) asks
questions on the amount of money
income received in the preceding calendar
year from each of the following
sources........"
Household income? Really? In the list of sources, I did not (thankfully), see the kid's lemonade stand.
Somehow, I feel these numbers are about as reliable as the unemployment statistics.
From page 21 of the census report.....
"How Income Is Measured:
For each person 15 years and older
in the sample, the Annual Social and
Economic Supplement (ASEC) asks
questions on the amount of money
income received in the preceding calendar
year from each of the following
sources........"
Household income? Really? In the list of sources, I did not (thankfully), see the kid's lemonade stand.
Somehow, I feel these numbers are about as reliable as the unemployment statistics.
1
Poor? Mid-class? Follow your leader ... For the 1st time in daze, Dem candidate HRC appeared Thur a.m. at her campaign hq ... wearing platform shoes, as she climbed several flights of stairs before doing a triple somersault, after which she recited the bill of rights word for word ... her campaign spokesperson said in a tweet. Taking a loaf of bread and a single Nova smoked salmon, she proceeded to feed her entire campaign hq staff of 700, and then donated the leftovers to Bklyn Hts homeless, before jogging to the airport and piloting her plane to North Carolina, as usual. 'No big deal,' she wrote in the sky above Washington.
2
How much do these official numbers have to increase before workers over 50 (or 40), discarded in large numbers by Corporate America as toxic waste, become employable again?
12
Why don't I feel better off now that the stock and real estate markets have come back, jobs are growing, gas is affordable, and inflation is low? Because we lost a DECADE. There is no making up the lost time. Even working five more years, our retirement isn't what we planned for. Our children graduated from top schools into the dead economy and will never see their incomes catch up to what they would have been. I like to think our generational cohort will share an esprit de corps like the Great Depression generation. It would be easier if the sacrifice had been more broadly shared.
9
Maybe Mr. Bui can help us identify and visualize the Walmart effect on the poor and middle class. In rural America where incomes have not risen it's often one of the only retailers and employers in town, and the other ones are McDonald's and Taco Bell. There's no other place to work or shop and they pay $7.25 per hour, half in real terms what minimum wage used to be. Are these giant corporations mining middle America Mr. Bui?
9
Need a slider bar to view consecutive years. Thank you.
OMG, the poor people got a raise! Quick Janet, better raise those rates and stop this abominable inflation immediately!
8
I'm not any richer. My increased cost on everything cancelled out my raise.
7
The suits are probably angry because they didn't grab up this additional income for themselves and their shareholders.
9
Edward Abbey described Capitalism best: "Growth for the sake of growth is the ideology of a cancer cell."
And it's the ideology of the American middle class.
And it's the ideology of the American middle class.
4
Too many people; not enough demand; too few skills.
With the economic and structural changes accompanying a networked, Information Society, individual theoretical productivity is increasing; obsolescence is galloping.
In the Rust Belt, the Coal Belt, the Farm Belts, the Bible Belt, and the Urban Poverty Belts, work opportunities continue to shrink. It's not going to get any better unless federal spending recapitalizes public services infrastructures, the air/sea military and education and a mandatory national service program is mandated.
With the economic and structural changes accompanying a networked, Information Society, individual theoretical productivity is increasing; obsolescence is galloping.
In the Rust Belt, the Coal Belt, the Farm Belts, the Bible Belt, and the Urban Poverty Belts, work opportunities continue to shrink. It's not going to get any better unless federal spending recapitalizes public services infrastructures, the air/sea military and education and a mandatory national service program is mandated.
8
The income and poverty report released on 9/13/2016 by the Census Bureau did not tell readers that 32 percent of the lowest strata of the white working class own absolutely no any wealth; today US median household incomes are still 2.4 percent below the absolute peak it hit in 1999; there are still 43.1 million people living in poverty in the US, up from 38 million in 2007. The poverty rate has hardly budged since the 1980s. See https://thenextrecession.wordpress.com/2016/09/14/globalisation-and-mila...
The poverty line of 2016 for household size of one is $11,800 and for that of four it’s $24,300. These households do not own homes; most of their family members are either homeless, living in rental housing, begging at the cross roads or bumming in parking lots. Their whereabouts is mostly unknown and they own no land or mobile phones so the Bureau would have a tough time to contact them for taking census of the poor souls. “3.5 million people moved out of poverty” is hardly credible. There might have been people doubling that size moved right back in poverty without the Bureau’s knowledge.
There is “moderate income growth among the rich.” As the one percent slows down in investment for expanded production due to falling profitability, they either move money overseas for higher earnings or buy stock and bonds for speculation, leaving their income growth temporarily undone.
Poverty is as ineluctable as its bedfellow on Main Street – inequality.
The poverty line of 2016 for household size of one is $11,800 and for that of four it’s $24,300. These households do not own homes; most of their family members are either homeless, living in rental housing, begging at the cross roads or bumming in parking lots. Their whereabouts is mostly unknown and they own no land or mobile phones so the Bureau would have a tough time to contact them for taking census of the poor souls. “3.5 million people moved out of poverty” is hardly credible. There might have been people doubling that size moved right back in poverty without the Bureau’s knowledge.
There is “moderate income growth among the rich.” As the one percent slows down in investment for expanded production due to falling profitability, they either move money overseas for higher earnings or buy stock and bonds for speculation, leaving their income growth temporarily undone.
Poverty is as ineluctable as its bedfellow on Main Street – inequality.
6
Hmmm. Here in the booming Bay Area it would require far more than a 5.2% increase to keep up with housing costs. Then there's the cost of health care, since even when employers provide it as a benefit they are finding ways to pass on more of the cost to workers. I'm not sure there is much to celebrate here.
10
Maybe celebrate that it's booming ?
If you want perpetual growth without inflation, maybe you should move to Colorado.
If you want perpetual growth without inflation, maybe you should move to Colorado.
2
The author is beside himself--this is a phenomenal! a blockbuster! Consider: an individual explodes through the poverty line--$11,880. And no measly 5.2 per cent, let's imagine a 10% increase (truly phenomenal!). That's roughly $13,000 per annum. Let's say he doesn't live in SF or NY, let's pick Omaha. A studio runs from $550 to $950. Cheapest possible rent is thus 1/2 of income, leaving a whopping $550 per month for health care, transportation, food, clothing, utilities--I won't bother to mention "entertainment" or "shopping". This test case might lead one to the conclusion that Mr. Bui's celebratory mood isn't really warranted.
Of course, this is the picture of an individual above the poverty line. Consider the lives of those below the poverty line. Consider those who subsist on $2 per day.
An op-ed piece in today's paper points out that our presidential candidates have nothing to say on the subject.
P.S. the real estate table I consulted indicated that in the last years the overall increase in rental prices in Omaha roughly 33%, necessitating a 5.2% increase in income annually just to keep pace.
Of course, this is the picture of an individual above the poverty line. Consider the lives of those below the poverty line. Consider those who subsist on $2 per day.
An op-ed piece in today's paper points out that our presidential candidates have nothing to say on the subject.
P.S. the real estate table I consulted indicated that in the last years the overall increase in rental prices in Omaha roughly 33%, necessitating a 5.2% increase in income annually just to keep pace.
18
Then the person needs to look harder for rent. I'm living in SoCal (92054) under 3/4 mile from the beach/train station/downtown for $550 inclusive of all utilities and internet with roommates. The Coaster and Metrolink runs direct to San Diego or LA respectively, and is walking distance. Granted, there are 4 of us in the house, but each with our own room and all of us working professionals saving money for retirement instead of paying $1500-1800 rent only for an apartment of our own. The poverty line does not always grant someone ultimate privacy of their own place. When did we decide every kid needs their own room, and every unmarried adult their own apartment? Since when was that the standard? The 50s, an era of middle class explosion, through till at least the 70s a la the Brady Bunch had kids sharing rooms and bathrooms and adults not moving out alone until married. Life isn't that dire if you have to share a little, and I just showed how rent can be cut by 75% to fast-track student loans or actually put away a lot. Find roommates and rent a house -- easiest way to save in SoCal. And if you are good tenants, rent doesn't go up nearly as fast as apartment complexes do because those are run by corporations instead of a single person who doesn't have economies of scale to combat non-occupancy if they still have a mortgage. ^^Real advice for millennials -- live like in a senior in college with your own room but suitemates. Start saving before lifestyle inflation.
17
Poverty isn't a pleasant life, but bobg doesn't need to exaggerate. There are plenty of 1 BR apartments available in Omaha for under $400.
3
Correct. A lot of the Fed led distortion is because they dont measure inflation adequately.
1
These results may be attributable in part by the shift of health insurance costs from business (pre tax) to personal (after tax) income. Resulting in a higher taxable income (but less cash) for millions of small family owned mom and pop businesses that have been kicked out of their small business insurance policies and in to Obamacare. These changes took place starting in 2014 due to ACA imposed insurance rules.
6
Don't talk about that. Too much reality isn't good for Hillary or Obama's legacy!
4
You have to read til the end of the article to get confirmation that the data represented here is *household* income.
The trouble is that households have been shrinking for the last few decades, so this is known to be subtle data to interpret. Basically, it is an apples and oranges comparison.
Economic conditions are only one factor that affects trends in household income, but people's choice (to be single, married or divorced) are another important factor. Also immigration and demographic changes affect the composition of households, making for a difficult comparison.
Finally, measures of income are commonly incomplete, they do not count various benefits (health insurance, vacations, ...) and taxes/redistributions. So they do not tell you that one decile is "richer" than the corresponding decile a decade ago.
The trouble is that households have been shrinking for the last few decades, so this is known to be subtle data to interpret. Basically, it is an apples and oranges comparison.
Economic conditions are only one factor that affects trends in household income, but people's choice (to be single, married or divorced) are another important factor. Also immigration and demographic changes affect the composition of households, making for a difficult comparison.
Finally, measures of income are commonly incomplete, they do not count various benefits (health insurance, vacations, ...) and taxes/redistributions. So they do not tell you that one decile is "richer" than the corresponding decile a decade ago.
4
If households stop shrinking, and start growing in average size as working young adults move in with their parents, or people double up in other ways, that would certainly have an effect on these statistics.
Since wages haven't risen, either there are slightly more workers per household, or workers are getting slightly more hours of work. It's probably a little of both.
Since wages haven't risen, either there are slightly more workers per household, or workers are getting slightly more hours of work. It's probably a little of both.
6
If memory serves me correctly, 1968 was also the year that the largest increase ever (in relative terms) took place under LBJ. My recollection is that in today's dollar 1968 minimum wage in todays dollars would be either $16 or 19 dollars per hour. Hmm .... I wonder if that might have something to do with the income gains.
12
Nothing feels better than the pain getting less, even if the pain is far from gone.
For how to manage the economy correctly see here:
http://www.statista.com/graphic/1/416207/average-annual-wages-germany-y-...
Notice the structural reforms starting in 2003 paying off after 2007.
For how to manage the economy correctly see here:
http://www.statista.com/graphic/1/416207/average-annual-wages-germany-y-...
Notice the structural reforms starting in 2003 paying off after 2007.
1
We know, for certain, that the rich got a whole lot richer than any poor or middle class citizens, but probably paid the same tax rate as the poor and middle class. And by the way, could we DEFINE exactly what income qualifies as "middle class." A broad, vague definition makes wealthier people look like they are paying their fair share, but not benefiting as much as they really are.
8
The article doesn't state how many moved INTO poverty. This isn't necessarily a lie, it just doesn't give all the information required to draw these surprising conclusions.
10
If the median income was historically low to begin with, a rise of 5% is not going to cause people to celebrate, especially since this increase will easily be erased by rising Obamacare costs.
14
Read the actual report so that you can see the changes in median income over time. What does "historically low" even mean? Sounds pretty arbitrary.
1
not celebrating.30k pay cut since 2007.2 years unemployed.over 60.lots of us out here.
39
let th good times roll
Seriously?
Americans were sucker punched in the gut in 1999. In 2007, it was a one-two sucker punch. Then we got kicked on the tarp. The bad guys who caused this chortled all the way to the bank with $100 million a piece, and more. No one went to jail for the wrong doing.
How can we not feel anxious. Law and order is for the middle class. The poor are fined, jailed, and shot with abandon. The rich are completely immune from any laws.
Anxiety cannot be alleviated when we feel naked and vulnerable. We are not criminals, we have a lot to lose, we are just trying to keep it together, and we are scared bleep less every Friday afternoon when the boss calls us in for a meeting.
One data point has no impact on our anxiety. We know full well that we could lose it tomorrow. Worse yet, we know that the wall streeters, the bankers, the politicians - all are busy working on the next scam, the next collapse, the next meltdown, the next Madoff scheme - will get away clean.
Wells Fargo just cleaned out thousands of people and laughed all the way to . . . . well, to the bank. We know that no one is going to jail over this. And the local riff raff is becoming the president bolstered by angry, potbellied hate-filled people with big pick ups and big guns.
And you were expecting Americans to be out of our economic anxiety funk over this one data point? Come one, give me a break here.
Kalidan
Americans were sucker punched in the gut in 1999. In 2007, it was a one-two sucker punch. Then we got kicked on the tarp. The bad guys who caused this chortled all the way to the bank with $100 million a piece, and more. No one went to jail for the wrong doing.
How can we not feel anxious. Law and order is for the middle class. The poor are fined, jailed, and shot with abandon. The rich are completely immune from any laws.
Anxiety cannot be alleviated when we feel naked and vulnerable. We are not criminals, we have a lot to lose, we are just trying to keep it together, and we are scared bleep less every Friday afternoon when the boss calls us in for a meeting.
One data point has no impact on our anxiety. We know full well that we could lose it tomorrow. Worse yet, we know that the wall streeters, the bankers, the politicians - all are busy working on the next scam, the next collapse, the next meltdown, the next Madoff scheme - will get away clean.
Wells Fargo just cleaned out thousands of people and laughed all the way to . . . . well, to the bank. We know that no one is going to jail over this. And the local riff raff is becoming the president bolstered by angry, potbellied hate-filled people with big pick ups and big guns.
And you were expecting Americans to be out of our economic anxiety funk over this one data point? Come one, give me a break here.
Kalidan
35
Yes. The author of the essay demonstrates an all too common disconnect with the majority of the country. It's almost as if we lived in some kind of oligarchy.
2
Right. Also, the Wells Fargo exec in charge of those 'operations' is being 'forced' to retire with just a $125 million crate of cash. Life is hard.
4
depressingly well put
1
Remember, complainers, these are real income gains, adjusted for inflation.
3
I assumed this income data was at least corrected for inflation. Are you sure it's not?
"...Households outside of metro areas saw their incomes fall 2 percent, while households in cities saw their incomes grow 7.3 percent..."
Let's take out the top 5% of earners in the cities and run those numbers again, shall we?
Let's take out the top 5% of earners in the cities and run those numbers again, shall we?
23
Nope. You can remove the top 5% of earners and the median will still be similar to what it is now. That's because the median is the exact middle of the distribution and is not influenced by outliers (the high earners). The mean would be affected by outliers, which is why the mean is not the correct measure to use when looking at income.
6
Temporary good news whose real effect will evaporate in the face of (1) constantly-deteriorating infrastructure, (2) higher-debt higher education, (3) ever-decreasing prospects for obtaining a good-paying job with good benefits once out of college, (4) tax policy that continues to strongly favor the ultra-wealthy, (5) congressional gridlock led by the "we won't work with this President" GOP, (6) undue and unfair influence on the electoral system by the financially well-heeled enabled by the highest court in the land, (7) lack of access to affordable health care, and (8) the military-industrial complex's constant drain of resources away from much-needed services and initiatives whose goal would be to provide care and opportunities for "regular" citizens who, due to that drain, are presently kept under the multi-generational thumb of poverty, despair, and hopelessness.
In other words, as long as the nation's business climate is governed by "ideals" rooted in the "conservative," "right-wing," "alt-right," and "GOP" viewpoints that idolize the rich, denigrate the poor, and belittle the very notion of a "middle" class, this will be a blip on the screen - not a new picture.
In other words, as long as the nation's business climate is governed by "ideals" rooted in the "conservative," "right-wing," "alt-right," and "GOP" viewpoints that idolize the rich, denigrate the poor, and belittle the very notion of a "middle" class, this will be a blip on the screen - not a new picture.
36
So the nation's business climate should be governed by Marxist ideas of "redistribution" just like Venezuela and Cuba?
4
All the rich Republican businessmen were against Trump, and he won the nomination anyway.
So maybe they are not as powerful as advertised?
So maybe they are not as powerful as advertised?
3
Nobody said anything about Marx or redistribution - although as far as the term "redistribution" goes, every expenditure, every fee, every gift, every deposit, every withdrawal is in some way a redistribution - every time you go to the supermarket, you engage in redistribution - and since even a free-market economy runs on "redistribution" the term does not automatically have to connote a negative outcome.
(Don't be scared of becoming Venezuela or Cuba; we're safe!)
Aside from that, most of my examples cannot be "fixed" by a simplistic talking point railing against cold war era demons. However, all of them acan be accomplished within a democracy, if that democracy values people over money...as un-American as that notion may seem.
(Don't be scared of becoming Venezuela or Cuba; we're safe!)
Aside from that, most of my examples cannot be "fixed" by a simplistic talking point railing against cold war era demons. However, all of them acan be accomplished within a democracy, if that democracy values people over money...as un-American as that notion may seem.
6
So instead of buying the generic boxes of Mac-n-cheese, they'll be able to afford the name brand Kraft mac-n-cheese. Happy day are here again!
37
No matter how many graphs are shown to enhance how much people on the lower and middle parts of the scale are making more, there is still inequality that can be easily remedied.
1) Raise the minimum wage ( and tie it to cola every year )
2) Raise the FICA cap on social security ( while expanding benefits )
3) Single Payer ( end profit gouging within health care )
4) Tuition free ( 2 years ) for public colleges and universities
5) Enable a tax system where you make more you pay more ~ simple
6) End costly wars.
Enact all of these and poverty is wiped out and a thing of the past.
( no more need for selective cherry picking graphs )
Simple.
1) Raise the minimum wage ( and tie it to cola every year )
2) Raise the FICA cap on social security ( while expanding benefits )
3) Single Payer ( end profit gouging within health care )
4) Tuition free ( 2 years ) for public colleges and universities
5) Enable a tax system where you make more you pay more ~ simple
6) End costly wars.
Enact all of these and poverty is wiped out and a thing of the past.
( no more need for selective cherry picking graphs )
Simple.
65
1) Raising the minimum wage will just set off a round of inflation as everyone making more than the minimum wage will also want a raise. In the end the only beneficiary will be the government because higher wages mean higher taxes.
2) It is generally accepted that an IQ of at least 110 is required to do college level work. That leaves out about 60% of all US high school graduates unless college level work is dumbed down to match their lower IQs.
2) It is generally accepted that an IQ of at least 110 is required to do college level work. That leaves out about 60% of all US high school graduates unless college level work is dumbed down to match their lower IQs.
7
1) That's the whole point. Raise the minimum wage so there is a chain reaction and all people get a raise. Large corporations are being subsidized by the tax payer as it is right now. They need to pay a living wage as well as benefits. The money needs to stop trickling up to the top. ( actually it is gushing right now )
2) Instead of categorizing people into a box, why not take my example and educate as many as we can as best we can. More and more, people are going into drastic debt to chase that piece of paper that has a degree on it. We need to invest in our future before the cost of it becomes to much to sustain. ( I think it already is with the prison industrial complex )
Try again .
2) Instead of categorizing people into a box, why not take my example and educate as many as we can as best we can. More and more, people are going into drastic debt to chase that piece of paper that has a degree on it. We need to invest in our future before the cost of it becomes to much to sustain. ( I think it already is with the prison industrial complex )
Try again .
16
1) I calculated it from when I was earning minimum wage it should be $10/hr
2) No money to pay for it
3) No money to pay for it
4) No money to pay for it
5) That's the way it is already.
The top 1% pays 37% of all taxes that go to the government.
The top 10% pays about 70%
Top 20% of Earners Pay about 85% of collected Income Tax
The bottom 50% all together pay only 2.75%
And the bottom 20%? get paid by Uncle Sam.
6) Wars are only ended when _both_ parties agree. Or, we could surrender to ISIS and other terrorists but I don't think most people would like Sharia Law, especially the great American women.
2) No money to pay for it
3) No money to pay for it
4) No money to pay for it
5) That's the way it is already.
The top 1% pays 37% of all taxes that go to the government.
The top 10% pays about 70%
Top 20% of Earners Pay about 85% of collected Income Tax
The bottom 50% all together pay only 2.75%
And the bottom 20%? get paid by Uncle Sam.
6) Wars are only ended when _both_ parties agree. Or, we could surrender to ISIS and other terrorists but I don't think most people would like Sharia Law, especially the great American women.
6
For me the last 3 sentences say it all. It is a clear explanation why Trump voters have serious economic fears.We saw a similar problem in the 1920's with farmers and look where that went.
9
Keep in mind that, unlike the 1920s, not everyone in the U.S. lives in rural areas.
2
The picture isn't that good if you look a the numbers outside of cities. Rural households saw their incomes drop by 2 percent between 2014 and 2015, incomes in the suburbs grew by 4 percent, and in the cities they grew by by 7.3 percent.
10
Richer for who? Employees now have to pay a greater amount for health insurance as well as higher out of pocket costs, and traditional pension plans have gone the way of the dinosaur. Finally, many people can only work 29 hours or less per week, thanks to the AHA regulations. That limit has a huge impact on those at the bottom of the economic scale.
32
The poor got "richer" by being able to work 3 part time jobs instead of 2. What a stroke of good fortune!
21