Source: U.S. Census Bureau h/t Vox

Category: Economy, Taxes and Policy

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

8 Responses to “Middle class households’ wealth fell 35 percent from 2005 to 2011”

  1. chartist says:

    This economic loss was made all the more painful by following the economic loss of the year 2000 so closely.

  2. barbacoa666 says:

    I would assume much of the loss is due to housing. But it would be interesting to know how much of the loss is due to people who got out of the market during the financial crisis and stayed out due to the “rigged market/money printing” and “Obama is a socialist who’ll ruin the economy” narratives.

  3. stonedwino says:

    1) Until we start treating capital income differently from earned income, this will not change.

    2) Tax payments from corporate America are down to just 7% of GDP. Lowest share ever.

    3) We need new tax brackets for top 5%, top 1% and top 0.1%. Whack ‘em

  4. b_thunder says:

    I’m very curious to see what’s the difference in wealth for the middle class looks like now, with S&P500 near 2000, i.e. what did the 30-35% rise in domestic stocks above 2005 level did for the majority of the country.
    Well… who an I kidding? What I really want to know is whether or not the Bernanke/Yellen crew is full of you-know-what when they claim to be “working” for the middle class. If the wealth of the 20th through 80th percentile didn’t improve vs 2005 while the wealth of the top 1% exploded to the stratosphere, that should pretty much end the debate about who benefits from the QE and would once and for all put an end to ALL the “trickle-down” economic theories.

  5. tigerlilac says:

    There is no way that only 20% of Americans had negative net worth at the end of 2011. Does the US Census Bureau just compile this data from the mailings they send to people’s homes? At that time, anyone not in the top 40% was at risk of having their net worth totally wiped out by downturns in home real estate values, tuition bills, or medical expenses. Just like institutional banks and other corporations, families did not mark-to-market or honestly look at their net worth because it was just too painful. We are all very good at lying to ourselves, individually and collectively.

  6. Christopher says:

    We are all Detroit.

    Nothing changes until K Street burns.

    Happy Labor Day!

  7. Low Budget Dave says:

    Robert Reich suggested recently that an easy solution would be to eliminate the corporate income tax completely, and replace it with higher tax on capital gains. Kotlikoff and others have made the argument from different angles, but it all comes down to the same thing: Corporations will shift their profits if they can. Paychecks (and even stock sales) are harder to hide.

    Europe’s Value-Added taxes are largely determined by where the activity takes place. America’s taxes are largely determined by who can find (or create) the best loopholes in their country of origin. From Greg Mankiw all the way to Robert Reich, there are no economists left who feel that America’s corporate tax system is rational.

  8. 4whatitsworth says:

    Most of the middle class was poorly educated by our public system, does not have a college degree nor any significant investments in retirement saving. Today college is un affordable, in addition capital investment is out of reach, and blue collar jobs have dried up.

    In my view over regulation and environmentalism as a political movement by those with a family paid for college education is a war on the blue collar middle class and by the looks of these stats the hard working blue collar crowd is loosing.

    We need blue collar work and great education for families who do not want to be generationally blue collar. Or we can continue to see regulation, public benefits and a military police state as the answer.