Wednesday, February 06, 2008

Being Alive Today in US, You've Won Lottery of Life

A previous CD post documented the significant gains in real income (not counting fringe benefits) over just a single generation (for ALL income groups), based on a sample of individuals who were between the ages of 0 and 18 in 1968 and have been tracked into adulthood.

Another important financial gain over that same generation from the late 1960s to the late 1990s was the significant increase in real net household wealth from about $159,000 per household in 1969 to $452,000 by 1999 (according to data from the Federal Reserve, adjusted for inflation using the CPI). In other words, at the same time that real median household income rose by 29% between the two generations, average real household net worth almost tripled!

18 Comments:

At 2/06/2008 10:02 PM, Blogger Kraut said...

I'd like to see the median as opposed to the average since we know from a previous post that the "rich" have gotten wealthier at a higher rate. I'm guessing this greatly brings up the average net wealth figure.

 
At 2/06/2008 10:14 PM, Anonymous Anonymous said...

The Senate legislation, valued at about $158 billion, and aimed at averting a U.S. recession, was offered as an alternative to the bill backed by President George W. Bush that overwhelmingly passed the House last week. The $146 billion House measure would give individuals a one-time $600 payment and couples $1,200, plus $300 per child.

The Senate Democratic version would have provided payments of $500 to individuals and $1,000 for couples, plus $300 per child, but with higher income caps. The goal is to give consumers money so they can spend it quickly and give the ailing U.S. economy a lift.

http://www.reuters.com/article/newsOne/idUSN0631744820080207

I laugh at you. You funny.

 
At 2/06/2008 11:03 PM, Anonymous Fred said...

Indeed, we are 99th percentile on best time in human history to be alive and best place on the planet to live.

 
At 2/07/2008 12:22 AM, Anonymous Anonymous said...

Can't beat a geologically stable landmass, economic freedom & an absence of tropical disease.

 
At 2/07/2008 2:12 AM, Anonymous Anonymous said...

at the same time that real median household income rose by 29% between the two generations, average real household net worth almost tripled!

No wonder American businesses are being massacred by Asian and Indian entrepreneurs.

 
At 2/07/2008 3:55 AM, Anonymous Anonymous said...

2001 Distribution of Wealth by Quintile

Quintile.......Mean Net Worth

Top 20%.......$1,604,700
Next 20%........$215,300
Middle 20%.......$75,000
Bottom 40%........$2,900

 
At 2/07/2008 5:45 AM, Blogger juandos said...

"the "rich" have gotten wealthier at a higher rate"...

Is that suppose to be a bad thing? Just asking...

"The Senate legislation, valued at about $158 billion, and aimed at averting a U.S. recession"...

Hmmm, shades of FDR's socialist, nanny state nonsense?

The New Deal Debunked

Macroeconomic model builders have finally realized what Henry Hazlitt and John T. Flynn (among others) knew in the 1930s: FDR’s New Deal made the Great Depression longer and deeper. It is a myth that Franklin D. Roosevelt "got us out of the Depression" and "saved capitalism from itself," as generations of Americans have been taught by the state’s education establishment.

This realization on the part of macroeconomists comes in the form of an article in the August 2004 Journal of Political Economy entitled "New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis," by UCLA economists Harold L. Cole and Lee E. Ohanian. This is a big deal, since the JPE is arguably the top academic economics journal in the world.

Consider perusing the fifty page report: New Deal Policies and the Persistence of the
Great Depression: A General Equilibrium Analysis∗

 
At 2/07/2008 8:02 AM, Blogger Kraut said...

juandos ... No, I didn't say there was anything wrong with the rich getting wealthier at a higher rate ... I just figured it would skew the "average" net wealth curve higher than it would otherwise be.

 
At 2/07/2008 8:08 AM, Blogger Kraut said...

Tropical disease ... we used to have that in the U.S. ... don't kid yourself.

 
At 2/07/2008 8:53 AM, Anonymous Anonymous said...

"Prosperity was assisted, too, by ... stimulants to purchasing, each of which mortgaged the future but kept the factories roaring while it was being injected ... People were getting to consider it old-fashioned to limit their purchases to the amount of their cash balance; the thing to do was to 'exercise their credit' ... 15% of all retail sales were on an installment basis ...It was fun while it lasted."
Only Yesterday, an informal history of the 1920's, F.L.Allen (published 1931).

 
At 2/07/2008 10:44 AM, Anonymous Anonymous said...

juandos said...

"the "rich" have gotten wealthier at a higher rate"...

Is that suppose to be a bad thing? Just asking...


juandos, it's time to stop being so defensive of what you call the rich.

Sometimes people just want the the true picture and the way that Perry paints pictures suggests that all people in the U.S. are somehow doing great but that is not the case.

How can we have a worthwhile discussion when data is being manipulated in the way that Perry manipulates it? For example Perry says "2 of Every 3 Americans Are Better Off Today Than Their Parents" and then fails to cite the rest of the information from the article he is quoting from that says, ", while one third are falling behind."

I'm not saying that being wealthy is a bad thing but I am drawing attention to the fact that Perry often paints a picture that is entirely different from the reality of the sources he cites.

 
At 2/07/2008 2:56 PM, Blogger juandos said...

"How can we have a worthwhile discussion when data is being manipulated in the way that Perry manipulates it? For example Perry says "2 of Every 3 Americans Are Better Off Today Than Their Parents" and then fails to cite the rest of the information from the article he is quoting from that says, ", while one third are falling behind.""...

Hmmm, Doc Perry is manipulating data?!?! How is that happening when Doc Perry gives you the link?

Yes, maybe one third are falling behind but they deserve to fall behind...

Why should we waste time on losers and whiners?

There are far to many REAL stories of people in this country who made a fortune filling a market niche but started from nothing...

If you want to use your money to float the parasites, well then you should...

 
At 2/07/2008 6:09 PM, Anonymous Anonymous said...

juandos said...

Yes, maybe one third are falling behind but they deserve to fall behind...

That isn't the point, the point is that we can't have a quality discussion without all the information being presented. Or are we supposed to assume that we need to verify everything that Perry says all the time because he leaves out too much salient data.

Why should we waste time on losers and whiners?

Why shouldn't we know that these people you call "losers and whiners" exist? Maybe there is a niche market need for someone to make a fortune off them.

Who do you think the target market of pay day loan operations is?

There are far to many REAL stories of people in this country who made a fortune filling a market niche but started from nothing...

So? And your point is what? Do you want to hear more stories of people making fortunes? Do you want to live vicariously on the stories of other peoples successes?

If you want to use your money to float the parasites, well then you should...

juandos, where did you ever get the idea that I wanted to float parasites? Buddy boy, it's time to step away from the bong and give up the crack pipe because you are hallucinating.

 
At 2/08/2008 9:43 AM, Blogger juandos said...

"Why shouldn't we know that these people you call "losers and whiners" exist? Maybe there is a niche market need for someone to make a fortune off them"...

Hmmm, because they always have and always will... What's your point?

"Who do you think the target market of pay day loan operations is?"...

Oh, that's easy... People who made some stupid choices of course... I mean who else goes to see a loan shark?

"So? And your point is what? Do you want to hear more stories of people making fortunes? Do you want to live vicariously on the stories of other peoples successes?"...

Well I personally like happy stories and NO I'm not living a vicarious life through their successes, thank you...

It reaffirms the greatness of this country, a country like no other on this planet...

"juandos, where did you ever get the idea that I wanted to float parasites?"...

Could it be YOUR incessant whining about them? Just asking...

 
At 2/08/2008 4:12 PM, Anonymous Anonymous said...

juandos said...

Could it be YOUR incessant whining about them? Just asking...

Well my first career was as a scientist so I have an appreciation for complete and accurate data collection. I also know how to cook the results. :)

If you prefer to bury your head in the dirt and ignore reality go ahead. I don't care. But reality will come back to bite you hard.

This is supposed to be a blog about economics not a blog about coming to incomplete or incorrect conclusions by ignoring salient data.

I will admit that one of the reasons I come to this blog is that there are positions stated that get me thinking and researching. In the end I might agree or disagree with the positions people take but at least I learn a little more.

For my research I tend not to consider op-ed pieces that are written to appeal to a target audience.

Instead I look for works that are mostly done by academics and presented in such a way as to look at all or most relevant points of view and that contain some explanation of how data was collected and analyzed.

My position is that I have no position but let the data speak for me. While I may defend a position, I am more than willing to be proven wrong.

Attack me with a personal attack and I'll put you in your place as I've done for some time now. Attack me with meaningful dialogue and complete data and I'll discuss and debate the issue with you.

If your argument is convincing then you will have won me to your way of thinking however I would hope that you would be sufficiently open minded to consider the data I present and the arguments I make as well.

 
At 2/09/2008 8:27 AM, Blogger juandos said...

"Well my first career was as a scientist so I have an appreciation for complete and accurate data collection. I also know how to cook the results"...

Yeah, I'm sure it was and your second career was as a brain surgeon right?

"Instead I look for works that are mostly done by academics and presented in such a way as to look at all or most relevant points of view and that contain some explanation of how data was collected and analyzed"...

Ahhh, that's the ticket! Get info from people who don't live in the real world...

"Attack me with a personal attack and I'll put you in your place as I've done for some time now"...

Hmmm, I see the high fever is back again...

Nice try now go take some aspirin...

You don't have to keep proving to me over and over again that you lack credibility...

 
At 2/09/2008 1:59 PM, Anonymous Anonymous said...

juandos said...

You don't have to keep proving to me over and over again that you lack credibility...

My credibility has never been in question because every point that I have made has been substantiated by reliable and respected sources and not by op-ed pieces like you use.

 
At 2/26/2008 5:12 PM, Anonymous Anonymous said...

Don’t believe one optimistic word from any public figure about the economy or humanity in general. They are all part of the problem. Its like a game of Monopoly. In America, the richest 1% now hold 1/2 OF ALL UNITED STATES WEALTH. Unlike ‘lesser’ estimates, this includes all stocks, bonds, cash, and material assets held by America’s richest 1%. Even that filthy pig Oprah acknowledged that it was at about 50% in 2006. Naturally, she put her own ‘humanitarian’ spin on it. Calling attention to her own ‘good will’. WHAT A DISGUSTING HYPOCRITE SLOB. THE RICHEST 1% HAVE LITERALLY MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. Don’t fall for all of their ‘humanitarian’ CRAP. ITS A SHAM. THESE PEOPLE ARE CAUSING THE SAME PROBLEMS THEY PRETEND TO CARE ABOUT. Ask any professor of economics. Money does not grow on trees. The government can’t just print up more on a whim. At any given time, there is a relative limit to the wealth within ANY economy of ANY size. So when too much wealth accumulates at the top, the middle class slip further into debt and the lower class further into poverty. A similar rule applies worldwide. The world’s richest 1% now own over 40% of ALL WORLD WEALTH. This is EVEN AFTER you account for all of this ‘good will’ ‘humanitarian’ BS from celebrities and executives. ITS A SHAM. As they get richer and richer, less wealth is left circulating beneath them. This is the single greatest underlying cause for the current US recession. The middle class can no longer afford to sustain their share of the economy. Their wealth has been gradually transfered to the richest 1%. One way or another, we suffer because of their incredible greed. We are talking about TRILLIONS of dollars. Transfered FROM US TO THEM. Over a period of about 27 years. Thats Reaganomics for you. The wealth does not ‘trickle down’ as we were told it would. It just accumulates at the top. Shrinking the middle class and expanding the lower class. Causing a domino effect of socio-economic problems. But the rich will never stop. They will never settle for a reasonable share of ANYTHING. They will do whatever it takes to get even richer. Leaving even less of the pie for the other 99% of us to share. At the same time, they throw back a few tax deductable crumbs and call themselves ‘humanitarians’. IT CAN’T WORK THIS WAY. This is going to end just like a game of Monopoly. The current US recession will drag on for years and lead into the worst US depression of all time. The richest 1% will live like royalty while the rest of us fight over jobs, food, and gasoline. Crime, poverty, and suicide will skyrocket. So don’t fall for all of this PR CRAP from Hollywood, Pro Sports, and Wall Street PIGS. ITS A SHAM. Remember: They are filthy rich EVEN AFTER their tax deductable contributions. Greedy pigs. Now, we are headed for the worst economic and cultural crisis of all time. SEND A “THANK YOU” NOTE TO YOUR FAVORITE MILLIONAIRE. ITS THEIR FAULT. I’m not discounting other factors like China, sub-prime, or gas prices. But all of those factors combined still pale in comparison to that HUGE transfer of wealth to the rich. Anyway, those other factors are all related and further aggrivated because of GREED. If it weren’t for the OBSCENE distribution of wealth within our country, there never would have been such a market for sub-prime to begin with. Which by the way, was another trick whipped up by greedy bankers and executives. IT MAKES THEM RICHER. The credit industry has been ENDORSED by people like Oprah, Ellen, Dr Phil, and many other celebrities. IT MAKES THEM RICHER. So don’t fall for their ‘humanitarian’ BS. ITS A SHAM. NOTHING BUT TAX DEDUCTABLE PR CRAP. Bottom line: The richest 1% will soon tank the largest economy in the world. It will be like nothing we’ve ever seen before. and thats just the beginning. Greed will eventually tank every major economy in the world. Causing millions to suffer and die. Oprah, Angelina, Brad, Bono, and Bill are not part of the solution. They are part of the problem. EXTREME WEALTH HAS MADE WORLD PROSPERITY ABSOLUTELY IMPOSSIBLE. WITHOUT WORLD PROSPERITY, THERE WILL NEVER BE WORLD PEACE OR ANYTHING EVEN CLOSE. GREED KILLS. IT WILL BE OUR DOWNFALL. Of course, the rich will throw a fit and call me a madman. Of course, their ignorant fans will do the same. You have to expect that. But I speak the truth. If you don’t believe me, then copy this entry and run it by any professor of economics or socio-economics. Then tell a friend. Call the local radio station. Re-post this entry or put it in your own words. Be one of the first to predict the worst economic and cultural crisis of all time and explain its cause. WE ARE IN BIG TROUBLE.

 

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