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Bottom 90% Poorer Than 1987

The Washington Post published an article with a similar headline with the focus on the bottom 90%.  It is true and a dismal finding, but the more enlightening data is found in the very upper echelon of wealth.  There has been a political and media focus on “the top 1%” but the reality is that the top 1% is a very different group that the top .1% or .01%.

The majority of the top 10% is not an extremely wealthy group.  The 14.46M 10-1% group have an average household wealth of $1.3M which captures 35% of the total wealth or a little less than 4 times their equivalent share (if we gave every individual an equal piece of the pie).

More astounding is the top .1-.01% group of individuals (144,600 people) with an average wealth of $39.7M or 10.8% of the country’s wealth.  This implies that this group possesses 120 times their equivalent share.

The very top .01% with average wealth of $371M own 11.2% of the country’s wealth and 1,120 times their equivalent share!

wealth distribution

Warren Buffett is all about increasing income taxes for the wealthy, but you have never heard him talk about taxing the collected wealth of the wealthiest.  It is easy for him to not pay himself an income, but it is very difficult for him to hide his basket of wealth.  It appears that we are back to the imbalance that came right before the great depression:

Top point one

Highly suggest you read the whole paper here.

Posted in Politics.

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Noteworthy News – August 18, 2014


Ferguson, Mo. Emblematic of Growing Suburban Poverty – Brookings

5 signs Americans are flat-out broke – USA Today

In the Sharing Economy, Workers Find Both Freedom and Uncertainty - New York Times


The Mystery of Lofty Stock Market Elevations – New York Times (Shiller)

Venture Capitalists Get Paid Well to Lose Money – Harvard Business Review

China Home Prices Fall in Most Cities on Weak Demand - Bloomberg


Print Less but Transfer More – Foreign Affairs

Europe pays farmers to destroy food hit by Russian ban - CNN Money

Medical Marijuana Advocates Become Unlikely Opponents to Pot Legalization Efforts – Slate


Financing Europe’s small firms: Don’t bank on the banks – Economist


Posted in Economics, Markets, Media, Politics.

Noteworthy News – August 11, 2014


Russia’s blow to globalization - Washington Post

The Obama Economic Recovery Is A Mirage For Most Americans – Investor’s Business Daily

Financial rationing scars Indian economy – Economic Times

Corporate 1% in U.S. Gets Wealthier While Cash Piles Up – Bloomberg

The Trucking Industry Needs More Drivers. Maybe It Needs to Pay More – New York Times

UK hiring plans at 16-year high, according to BDO report – BBC

UK employers expect scant upturn in wages: survey – Reuters


Wall Street: Whose bull market is it? - Christian Science Monitor

China posts benign consumer inflation in July, but producer deflation stays stubborn – Reuters

Market Breathes Sigh Of Relief As China Inflation In Line With Expectations – Forbes


Devalue the pound to ‘transform’ economy, says Labour’s biggest donor – Telegraph

Putin’s European Food Ban Bad For Russia, Good For Brazil – Forbes


New global crash looming: bank boss – New Zealand Herald

Portugal bank failure knocks recovery – Financial Times


Posted in Economics, Markets, Media, Politics.

Noteworthy News – August 4, 2014


Demographics: Prime Working-Age Population Growing Again – Calculated Risk

How the middle class got screwed: College costs, globalization and our new Insecurity Economy – Salon

How Your Face Shapes Your Economic Chances - The Atlantic

Consumers are borrowing again, but the economy has been slow to respond - Economist

Why American companies are getting ‘old and fat’ – Yahoo Finance

Average U.S. family lost one third of its net worth in past decade, study reports – NOLA


Worst weekly drop for S&P 500 in more than two years - CNBC

Some Public Pension Funds Making Big Bets On Hedge Funds – NPR

Renting drives U.S. homeownership to 19-year low – Reuters


Japanese leader Abe wants more women to work. So he’s got big plans for day care – Washington Post

No-Exit Strategy May Be Fed Burden in Unwinding Stimulus - Bloomberg


Will Europe’s banking ‘big bang’ loosen lending? - Reuters




Posted in Economics, Markets, Media, Politics.

Noteworthy News – July 28, 2014


The Typical Household, Now Worth a Third Less - New York Times

Consumer sentiment hits four-month low – MarketWatch

UK profit warnings hit three-year high, says EY – BBC


Asia Stocks Rise as H Shares Head for Bull; Soybeans Gain – Bloomberg

The Big Mac index: Our flame-grilled guide to currencies suggests the dollar is getting dearer - Economist

New home sales fall sharply in June - LA Times


Shinzo Abe faces rising disenchantment in Japan - Financial Times


Silver bullion banks accused of manipulation in U.S. lawsuit - Reuters

Brazil injects $20 billion into banking sector – CNBC


Posted in Economics, Markets, Media, Politics.

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