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View Full Version : Net Wealth Hits 43 Year Low



Kathianne
12-01-2012, 08:37 AM
Just think, the American people voted for this to continue:

http://washington.cbslocal.com/2012/11/30/study-american-households-hit-43-year-low-in-net-worth/


Study: American Households Hit 43-Year Low In Net Worth November 30, 2012 12:52 PM
WASHINGTON (CBS DC) – The median net worth of American households has dropped to a 43-year low as the lower and middle classes appear poorer and less stable than they have been since 1969.


According to a recent study (http://appam.confex.com/appam/2012/webprogram/Paper2134.html) by New York University economics professor Edward N. Wolff, median net worth is at the decades-low figure of $57,000 (in 2010 dollars). And as the numbers in his study reflect, the situation only appears worse when all the statistics are taken as a whole.

According to Wolff, between 1983 and 2010, the percentage of households with less than $10,000 in assets (using constant 1995 dollars) rose from 29.7 percent to 37.1 percent. The “less than $10,000″ figure includes the numerous households that have no assets at all, or “negative assets,” which is otherwise known as “debt.”

...

“This downbeat take on their economic situation comes at the end of a decade in which, for the first time since the end of World War II, mean family incomes declined for Americans in all income tiers,” the Pew Report stated. “But the middle-income tier—defined in this Pew Research analysis as all adults whose annual household income is two-thirds to double the national median —is the only one that also shrunk in size, a trend that has continued over the past four decades.”


Wolff’s focus on total wealth not only measures how much money a household brings in, but also the amount it accumulates. This latter number is very significant — economically secure households are generally more comfortable spending their disposable income, and are less likely to become a drag on the social safety net.

aboutime
12-01-2012, 03:13 PM
Kathianne. No disrespect intended here. But. I suspect. You and I have no need to remind the American people about how their net wealth has reached a low.

Actually. This thread is seemingly talking to the choir...so to speak.

Of course. We have some members who would like us to believe "Everything in their life is PEACHY KEEN, and very comfortable." And some members may actually feel that way, as we have seen. Where they believe this forum is the place for their BRAGGING RIGHTS to be exposed in their own, patronizing ways.

When I read your title. I didn't think about how net wealth affected me, as I would have done; many years ago.
But now. I am reminded of our two son's, their wives, and our five grandchildren who will soon be facing some very serious challenges to their lifestyles, and well being if the FISCAL CLIFF isn't addressed Honestly, and without Partisan Hackery.

Both of our son's work, and their wives work. And making ends meet is a real challenge....as it is for them, with two, and three children to feed.
So. The very last thing most Americans need to be reminded of is...how their former economic situation is no longer what it was.

Kathianne
12-01-2012, 04:33 PM
Kathianne. No disrespect intended here. But. I suspect. You and I have no need to remind the American people about how their net wealth has reached a low.

Actually. This thread is seemingly talking to the choir...so to speak.

Of course. We have some members who would like us to believe "Everything in their life is PEACHY KEEN, and very comfortable." And some members may actually feel that way, as we have seen. Where they believe this forum is the place for their BRAGGING RIGHTS to be exposed in their own, patronizing ways.

When I read your title. I didn't think about how net wealth affected me, as I would have done; many years ago.
But now. I am reminded of our two son's, their wives, and our five grandchildren who will soon be facing some very serious challenges to their lifestyles, and well being if the FISCAL CLIFF isn't addressed Honestly, and without Partisan Hackery.

Both of our son's work, and their wives work. And making ends meet is a real challenge....as it is for them, with two, and three children to feed.
So. The very last thing most Americans need to be reminded of is...how their former economic situation is no longer what it was.

No disrespect taken. Nor meant here, either. The very thing the American people NEED is to realize what they've lost and if things don't turn around, what their kids and grandkids will never have.

You owe more than you house is worth? Your 401k, IRA, Roth not keeping up with inflation? Are you using savings to maintain lifestyle? Do you pay interest on credit cards?

When I was going through my divorce starting in 1992, my ex and I were 35 and 36. Net worth? Just over $850k. We had friends doing better, it was the 'norm' for the area. Not anymore.