Only the richest get richer in this recovery
New research shows most families got dinged financially from 2009 to 2011, with one notable exception: The top 1%.
The economy is still recovering from the recession, and it's come a long way since 2008, when the housing market was dire and the stock market took a nosedive.
But new economic research indicates that the recovery hasn't benefited the average American family -- unless your family is part of the country's new elite. Only the top 1% saw average real income growth between 2009 to 2011, according to a Berkeley economist. (By the way, to break into to the top 1%, you'll need an annual income of at least $366,623, according to the World Top Incomes Database.)
For the rest of us in the 99% bracket, family incomes slipped by 0.4% from 2009 to 2011, according to Emmanuel Saez, the University of California, Berkeley, economist whose earlier research documented a three-decade run-up in income for America's top 1%.
The recovery is treating the top 1% much better, however. That group saw incomes gain 11.2% during the first two years of the recovery, according to Saez, who was named a MacArthur Fellow in 2010 for his research into income and tax policy.
But doesn't a rising tide lift all boats? Saez says it's not happening in this recovery. "In 2012, top 1% income will likely surge, due to booming stock prices, as well as re-timing of income to avoid the higher 2013 top tax rates," he wrote in the January report. "Bottom 99% will likely grow much more modestly than top 1% incomes from 2011 to 2012."
Astoundingly, Saez writes that his new research shows that the top 1% grabbed 121% of the income gains in the first two years of the recovery. How does that work? In essence, it means that the gains of the top 1% came at the expense of the remaining 99%.
The research may give a boost to President Obama's proposals outlined in his State of the Union speech on Tuesday. Taking a progressive stance, his address included ideas such as raising the minimum wage to $9 an hour.
That might not be enough to appease Saez, who last year told The New York Times he advocates much higher top marginal tax rates on the rich -- up to as much as 90%.
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When the richest Americans pull their resources and pay for the elected officials campaigns who gets the favors? When 'our' supreme court decided Corporations were people, whose been getting the favors? The American middle class is disappearing because the richest Americans are taking what the middle class earned. The richest Americans, i.e., corporations and heavy investors like Mitt Romney who hide their money in overseas accounts to keep from paying taxes are in fact running the show on capital hill. "Our" representatives are members of this elite group of millionaires or very desperately trying to join them. I work everyday. I'm so called middle class, I earn 80,000 a year but I am a dying breed in America. My son works for less than half what I make when he is lucky enough to find some work. My benefits have gone south for years. I've lost vacation time. Retirement money. I've had to pay more and more for my health coverage out of my pocket and lost coverage. The playing field is tilted to the rich. The banks are borrowing the peoples money for 0 percent interest from the federal reserve. They loan the same money at 2 to over 20 percent interest then pay themselves bonuses for making a profit. America and its people need to stop the bleeding. America and its great middle class need to rise up and take back our country.
The rich get richer, while at the same time they are always crying that they need even more.
Didn't anyone EXPECT the Rich to get richer during the Recovery..??
Historically it just about happens every sequence..
When I went to school they didn`t teach anything in high school or college about the stock
market.I`ve made a to the last 15 years.Jobs will come and go, but the market is great
if you know the ropes.You don`t get rich working for someone else.At least not for a while.
The market is like winning at the horse races, if you`re smart.
no big suprise here....But I see very little the Prezzz can do, heck is the 1% as well.
Geezzeee...look at his net worth before office, then after office....duhhhhhhhhhhhhhh
We should not be blaming corporations since companies are made up of many workers but a few overpaid execs that gets all the dough, even if they're wrong. Those execs are the ones getting all the benefits and golden parachutes. It is those execs that drive the companies and commanding the workers.
Any financial paper could go down with the kill the dollar policy in DC. Have money in hard assets. We are now in a bond bubble. The policy tools are nearly exhausted. This whole thing could end badly.
We are still working on cleaning up the great recession disaster that those 2 imbeciles Bush and Cheney created, and the rest of the Republican idiots approved of and raved about.
There is no cure for Republican stupidity!
Obama and his rich cronies love it.
Over-population, immigration drives wages down.
Obama plays more golf, on more expensive courses than any other government employee in D.C.
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[BRIEFING.COM] The stock market punctuated July with a broad-based retreat that sent the S&P 500 lower by 2.0% with all ten sectors ending in the red. The benchmark index posted a monthly decline of 1.5%, while the Russell 2000 (-2.3%) underperformed to end the month lower by 6.1%.
To get a better feel for what led to today's retreat, we'd like to look back to Wednesday, when the market had ample reason to rally, but did not. Instead, it ended basically flat after a sloppy day of ... More
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