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wcaseym (42.45)

Gaugeing! Gaugeing! One...Two...Three!

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April 11, 2010 – Comments (2)

"The gauge of an economy's strength is based on the income of the wealthiest 1% of the population." - my personal quote since, oh, January 30, 1998. 

 15 Mind-Blowing Facts About Wealth And Inequality In America
http://www.businessinsider.com/15-charts-about-wealth-and-inequality-in-america-2010-4#the-gap-between-the-top-1-and-everyone-else-hasnt-been-this-bad-since-the-roaring-twenties-1

C.

2 Comments – Post Your Own

#1) On April 11, 2010 at 1:56 PM, binve (< 20) wrote:

Very valid observation!

"An imblance between rich and poor is the oldest and most fatal ailments of all republic" -Plutarch  c.a. 100 AD

Makes you wonder why ~2000 years later we think we can do think the same way and yet have different results than Plutarch observed, yet this observation that Plutarch made was based on the previous 2000 years of observation of ancient Greek economics. 

.... That is 4000 years of hubris ... but however this time it is different!! [*extreme* sarcasm]

Thanks for the post!!

 

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#2) On April 11, 2010 at 3:07 PM, Option1307 (30.65) wrote:

Before I draw a conclusion from the data, there are several "problems" I see with it. I'm not saying I disagree with it, I just would like more details before we get all pissy etc.

1) The data is really old. In some cases it is refering to 2006 data, before the recent crash and when the RE/stock market bubble was at it's peak. As the article states, the majority of the stocks/mutual funds/etc. are owned by the top few percent, this was one of the hardest hit asset classes recently. Thus, the high income earners would have taken the largest hit b/c of this in terms of dollars and percent earnings. I'd like to see an updated version of the data, although I doubt it's available.

2)What defines, top 0.01%, 1%, 5%, 10% in Americ? i.e. what is the yearly income needed to qualify for those percentiles? I know when I last looked earning ~120K/yr put you in the top 10% and earning ~250K/yr put you in the top 1% of American families. I understand that this is a lot of money and you should feel fortunate to make this, but lets keep this in perspective. Being in the top 1% of American income earners does not mean you are an uber rich CEO of JP(I suck)Morgan-Chase and fly in lavious private plans. 

3) I was somewhat on board with the author and my sympathy was running on high until I followed the link on the last page "20 Cities that Have Completely Missed the Recovery"...

What did I find? Cities like Detroit, Sacramento, LV, Phoenix, Stockton, Meodesto, Florida, Florida, Florida, Florida again, LMFAO! 

Really, you want me to feel sorry for those craptastic cities (no offense if you live there Fools)? Those were some of the absolute worst offenders in the recent RE bubble and others have been on their death bed for the last several decades, cough, Detroit, cough. I'm sorry, many of those cities deserve to suffer.

Again, I'm not knocking the article, interesting stuff, just would like more details.

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