Study: American households hit 43-year low in net worth
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 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.”
Blowback
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Not to worry. Obama’s working on that economic patriotism thing. I’m sure he’ll fix it.
The Count on November 30, 2012 at 7:52 PM
All according to 0bama’s plan.
And (most of) you people think he is just incompetent.
LegendHasIt on November 30, 2012 at 7:56 PM
I’m at the totally different end. I am worth more today than any of my 43 prior years.
astonerii on November 30, 2012 at 8:04 PM
“We gotta keep obama in president … you know … he gave us a phone … he gonna do more!”
Pork-Chop on November 30, 2012 at 8:05 PM
Folks, I said it before the election. I have less money to real property than I’ve had before in my entire life. But property, especially land doesn’t turn worthless in the blink of an eye like currency does. I’d buy gold too but it tastes funny.
hawkdriver on November 30, 2012 at 8:09 PM
Their net worth is so low because they are up to their necks in consumer debt. The widespread use of the credit card was the atomic bomb that created this. Credit cards were meant only to serve as a way of paying for things when you were travelling. At the end of the month, you paid off the balance in full. It was not a loan. Then the ’70s came. It quickly morphed into a banking system where you carry a balance and pay interest every month. That business model was much more lucrative. The credit card companies and the banks make the vender’s fees, and the interest. But even then, you had to have solid credentials to get a card. Then, over time, the credit card companies discovered the even better business model of letting almost anyone have a card – to encourage spending. The cards that defaulted were just the cost of doing business.
Now teenagers have credit cards. Students get credit cards. They may send your pet a credit card – by mistake of course. But without those credit cards, hundreds of billions of dollars worth of non-essential purchases, which were not made prior to the widespread implementation of the credit card, are now made. And most of that becomes household debt as people consolidate those credit card debts into the mortgages.
keep the change on November 30, 2012 at 8:17 PM
8)
WeekendAtBernankes on November 30, 2012 at 8:22 PM
Nothing that a bunch of trips to Costco to buy garbage in bulk can’t remedy.
Christien on November 30, 2012 at 8:25 PM
Strangely, so is 0bama, Susan Rice, Eric Holder, and lots of corrupt and ‘connected’ people.
Not saying you are corrupt or ‘connected’…. Just saying that ‘being worth more today than ever’ is not necessarily proof of goodness and wisdom or that the system is working the way it should.
LegendHasIt on November 30, 2012 at 8:31 PM
Yet another quirk of the Obamarecovery.
WisCon on November 30, 2012 at 8:35 PM
I just finally bought a house. Been paying it off at double the payment plan and building equity. A house Bush was dead set on making too expensive for me with his making housing affordable and ownership society push. I am a conservative. Own my car outright, but my wife’s jeep is still a debt. Going to have to increase my net worth a large amount between now and age say, 74.
astonerii on November 30, 2012 at 8:38 PM
Lucky you: per my life insurance policy, I’m worth more dead than alive. Goodbye, cruel world – gotta pay the kids tuition somehow…
affenhauer on November 30, 2012 at 8:40 PM
How many count what they have left on their EBT card as personal wealth, as without it they have do not have enough for a lotto ticket.
tjexcite on November 30, 2012 at 8:41 PM
Not a funny joke. Your worth is valued far beyond your wealth. Cheer up and remember, this is all temporary and things will improve eventually.
astonerii on November 30, 2012 at 8:43 PM
One of the biggest causes of the growing wealth gap is the hidden inflation tax that redistributes wealth from the poor and middle class, especially responsible savers, to corrupt banks and other cronies and special interests.
If Americans want to halt and reverse the downfall of the middle class then end the fed, or at least stop the the counterfeiting, and balance the federal budget. Otherwise the middle class will continue plummeting over the cliff while the elites who counterfeit the money and buy the government grow richer and more powerful.
FloatingRock on November 30, 2012 at 8:49 PM
Was just ‘jerking your chain’,… Although I always figured you were more of a Libertarian than a conservative, so thanks for clearing that up.
LegendHasIt on November 30, 2012 at 8:54 PM
I thought I would throw that out. People attack me when I attack Bush.
The man was a disaster for Conservatism.
astonerii on November 30, 2012 at 9:07 PM
Agreed.
Although the alternatives, and the Republican nominees following him would have been even worse.
LegendHasIt on November 30, 2012 at 9:16 PM
In three years, we’ll look back at today as a golden age.
Rebar on November 30, 2012 at 9:20 PM
While worse temporarily, at some point the people are going to rebel against the progressive (R). I am not saying that I was willing to ditch Bush in 2004, but post 2008 our side should have learned the lesson to be taught by a progressive (R).
After 2012 my lesson has been completed. I will not vote for another Republican that is progressive, I do not care if the opponent is Vladimir Putin with a running mate Maxine Waters.
If no one will be the adult in the room, Let It Burn, add fuel as needed to get it done before handing it over to the children.
astonerii on November 30, 2012 at 9:21 PM
The flames of Wyatt’s Torch flicker so nicely in the dark.
LegendHasIt on November 30, 2012 at 9:35 PM
… and loving every minute of it.
—– Maxwell Smart
viking01 on November 30, 2012 at 9:55 PM
rogerb on December 1, 2012 at 4:04 AM