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Economy: Family net worth plummets nearly 40%

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Economy: Family net worth plummets nearly 40%

Postby Bludgeon » Tue Jun 12, 2012 7:15 am

CNN wrote:NEW YORK (CNNMoney) -- The average American family's net worth dropped almost 40% between 2007 and 2010, according to a triennial study released Monday by the Federal Reserve.
The stunning drop in median net worth -- from $126,400 in 2007 to $77,300 in 2010 -- indicates that the recession wiped away 18 years of savings and investment by families.

http://money.cnn.com/2012/06/11/news/ec ... ?iid=HP_LN

Might as well take advantage of a good report by CNN when you see one and put it up for discussion. Statistics like this really put to shame all the political arguments about how the economy is improving. Voters outside the public sector or hybrid sectors don't need a statistic to know what's happened to their net worth. They're losing everything they have while working in industries that used to bring prosperity. For a lot of working class voters, wages haven't just stayed the same over the last 10 years, but gone down. Adjusting for inflation median income is less than it was during Clinton's second term. When they've lost income, savings (remember those?), net worth and dollar value, fancy arguments about a growing economy don't pass the gut test. This is going to be a really big election.
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Re: Economy: Family net worth plummets nearly 40%

Postby O.J. » Tue Jun 12, 2012 8:05 am

Is your solution more tax cuts for these people?

Families in the top 10% of income actually saw their net worth increase over the period, rising from a median of $1.17 million in 2007 to $1.19 million in 2010.

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Re: Economy: Family net worth plummets nearly 40%

Postby pjbogart » Tue Jun 12, 2012 8:20 am

I can't decide what's more clownish: the insinuation that huge losses in middle class wealth are a clear indication that we need to elect Republicans or the begrudging use of someone other than FoxNews to make the point.
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Re: Economy: Family net worth plummets nearly 40%

Postby snoqueen » Tue Jun 12, 2012 9:00 am

This has got a lot to do with poor regulation of big financial institutions, which threw us into the mortgage loan crisis, and that's where families lost a lot of their net worth -- their houses.

Whoever's running for national public office ought to consider this and propose stricter regulation of these institutions. I would suggest paying attention to pension plans, which are another place families try to put aside money for the future. We don't want to see those looted because it'll cost a lot more later on to take care of old people whose pensions disappeared than to protect the pensions now.

I don't see either of the major parties is making much of a point of financial regulation, and it's not hard to guess why. Follow the money.

Why would anyone feel the Republicans will do better protecting people's savings?
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Re: Economy: Family net worth plummets nearly 40%

Postby fisticuffs » Tue Jun 12, 2012 9:19 am

Voters outside the public sector or hybrid sectors don't need a statistic to know what's happened to their net worth.


Public sector workers have experienced the same thing. They've been subject to pay cuts, layoffs, and furloughs. They've seen their investments decline and their home values. They also had the pleasure of being demonized by right wing lunatics because they chose to dedicate themselves to public service and a lower pay check. If you're looking for a group that hasn't felt this pain you should look to the executives in the private sector.
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Re: Economy: Family net worth plummets nearly 40%

Postby Rich Schultz » Tue Jun 12, 2012 9:43 am

So your solution is to make everybody poorer?
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Re: Economy: Family net worth plummets nearly 40%

Postby wack wack » Tue Jun 12, 2012 9:46 am

Rich Schultz wrote:So your solution is to make everybody poorer?


if that is the net result of making society stronger, then of course. Duh.
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Re: Economy: Family net worth plummets nearly 40%

Postby Stebben84 » Tue Jun 12, 2012 9:53 am

Rich Schultz wrote:So your solution is to make everybody poorer?


CEO salaries are at record levels and families salaries are in a sharp decline. Does that really sit well with you? If executives are doing so well, why isn't this translating to the working class? They're moving in opposite directions.
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Re: Economy: Family net worth plummets nearly 40%

Postby fisticuffs » Tue Jun 12, 2012 10:02 am

So your solution is to make everybody poorer?


I thought that was Walker's solution. Force the pain of the private sector worker on the public sector worker. I don't think making any worker poorer is the right move. I would like to see CEO pay distributed to more workers. A 6% increase for a guy making 10 Million would make for a nice raise for the people who put that money in his pocket in the first place. The people working harder for the same or less money.
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Re: Economy: Family net worth plummets nearly 40%

Postby gargantua » Tue Jun 12, 2012 11:27 am

Rich Schultz wrote:So your solution is to make everybody poorer?


This is such an off-base, simplistic response to what Fisticuffs said that I'm surprised anyone even bothered to respond to it.
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Re: Economy: Family net worth plummets nearly 40%

Postby Bludgeon » Tue Jun 12, 2012 3:37 pm

gargantua wrote:
Rich Schultz wrote:So your solution is to make everybody poorer?


This is such an off-base, simplistic response to what Fisticuffs said that I'm surprised anyone even bothered to respond to it.


...in which case, perhaps fisty's finally met his match [/shock]. Naw the fisty tree is growing hale and developing a very welcome bit of substance, I'm pleased to admit. As such, he will appreciate the humility that a taste of his own medicine will bring him.
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Re: Economy: Family net worth plummets nearly 40%

Postby fisticuffs » Tue Jun 12, 2012 3:49 pm

If the public sector weren't included in the study the drop in net worth would have been more like 50%; working class families in the private sector have lost a lot more than 40%, meaning that public sector employees have lost a lot less than 40%, which is not the same thing.


That's completely baseless but I'll let it slide. Here's a question for you... Why? Why has family Net worth declined. Policy or historical events would be nice.
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Re: Economy: Family net worth plummets nearly 40%

Postby Bludgeon » Tue Jun 12, 2012 4:00 pm

fisticuffs wrote:
If the public sector weren't included in the study the drop in net worth would have been more like 50%; working class families in the private sector have lost a lot more than 40%, meaning that public sector employees have lost a lot less than 40%, which is not the same thing.


That's completely baseless but I'll let it slide. Here's a question for you... Why? Why has family Net worth declined. Policy or historical events would be nice.


Ooh, tanglin' with the fist. Thanks for letting me slide because I'm about to go to work. Quick answers have never served me well on this forum, so I won't add one now.
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Re: Economy: Family net worth plummets nearly 40%

Postby fisticuffs » Tue Jun 12, 2012 4:07 pm

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Re: Economy: Family net worth plummets nearly 40%

Postby snoqueen » Tue Jun 12, 2012 5:01 pm

CEO salaries are at record levels and families salaries are in a sharp decline. Does that really sit well with you? If executives are doing so well, why isn't this translating to the working class? They're moving in opposite directions.


Bolding by me, not OP.

Try actually discussing this. Bludgeon did a fine derailing job earlier and took a few others along, so he gets credit for well-practiced derailment skills. But the problem hasn't gone away, and as long as the CEO salaries are going up while the rest are going down, we're not exactly making everybody poorer, are we?

[sarcasm]And if making people poorer means a guy with a five-car garage hasn't got toys to put in each bay, who will hear his sad little cries and take pity if all his friends are in the same boat? [/sarcasm]
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