posted
Those numbers look a little extreme to me but the basic thrust of the article is correct. In fact this is a trend that is taking place in all of the first world nations. Middle class wealth was created by the opening of the frontier around 1500. The opening of the frontier around the world created a dynamic economic situation in Europe and America that allowed for unprecedented distribution of wealth down the social ladder. With the closing off of the frontier during the late 20th century it will make it difficult, if not impossible to maintain the level of wealth distribution we have enjoyed in the past. One can expect that we will return to a more static society with much less upward mobility.
Posts: 5822 | From: USA | Registered: Jan 2004
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this really put the concept of the "american dream" in question!!! with the growing economical power of china and india, the middle class in the west will further get squeezed and the gap will further grow.
Posts: 299 | From: Dubai | Registered: Jan 2006
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i am a firm believer in statistics when done right. the article points to a pattern, and that is wealth is becoming more concentrated!!
Posts: 299 | From: Dubai | Registered: Jan 2006
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posted
well I agree the rich are getting richer and the poor are getting poorer -- the erosion of the middle class -- and it sucks.
I think our personal debt load is the killer....since most Americans own their own homes. I'm not sure how well we are saving for retirement though. The days of pensions are going to be long gone very soon.
But *this* is one thing I'd love to see taught in public schools. People who think having a cool expensive car is a symbol of wealth or status are smoking crack! They should sink they money into a house and a 401k and drive a Honda! Posts: 8794 | From: 01-20-09 The End of an Error | Registered: Dec 2004
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posted
Gulfy has a good point but I'm affraid the problem has no solution. China and India will continue to grow, no doubt, but I do not expect their populations will gain the level of prosperity we have had in the west in the last hundred years or so. I'm affraid that a glorified Brizal may be the model. The wealth and power will still be there but controled by a far fewer number of people. You are seeing a situation in the United States where 25% of the population may do very very well , while 75% have a much lower standard of living. The educated technocrats will become the elites.
-------------------- God Bless President Bush Posts: 5822 | From: USA | Registered: Jan 2004
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posted
yes... but do we have any predicted out comes... projections and estimates. economic results? is this wealth cash, real estate, debt. based on what... annual income, tax, capital. imported wealth? either in the form of importing professionals, allowing wealthy people to settle, or american individuals, lets say filmstars and singers, who are in the top 1 % but have earned money from around the world. these peoples gain in wealth has no bearing on the lower 80%. and what about the non wage and salary earners? thats what i dont like about statistics.
Posts: 5642 | From: hellonearth.myfastforum.org Forum Index | Registered: Feb 2006
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"Generally speaking, "wealth" is the value of everything a person or family owns, minus any debts. However, for purposes of studying the wealth distribution, economists define wealth in terms of marketable assets, such as real estate, stocks, and bonds, leaving aside consumer durables like cars and household items because they are not as readily converted into cash and are more valuable to their owners for use purposes than they are for resale (Wolff, 2004, p. 4, for a full discussion of these issues). Once the value of all marketable assets is determined, then all debts, such as home mortgages and credit card debts, are subtracted, which yields a person's net worth. In addition, economists use the concept of financial wealth, which is defined as net worth minus net equity in owner-occupied housing. As Wolff (2004, p. 5) explains, "Financial wealth is a more 'liquid' concept than marketable wealth, since one's home is difficult to convert into cash in the short term. It thus reflects the resources that may be immediately available for consumption or various forms of investments."
no projections, only pointing to a trend!
Posts: 299 | From: Dubai | Registered: Jan 2006
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