All Recoveries are not Created Equal

According to a new Pew Research report, during the first two years of the (tepid) recover the “upper 7 percent of American households saw their average net worth increase 28 percent, while the wealth of the other 93 percent declined.”

Here’s an analysis from the Washington Post: In recovery the rich get richer

And here is a link to the Pew Report: Rise in Wealth for the Wealthy

This is not necessarily a bad thing in the abstract, but we don’t live in Abstractistan, we live in the real world. In the real world wealth disparity leads to social and political unrest. It is also well documented that when the wealthy control most of the money, there is less in the pockets of average consumers, and hence less economic activity. Do both sound familiar?

 

Author: Mike

I am a patent attorney in Lexington, Kentucky. My law firm web site is http://www.coblenzlaw.com. I ran for State Representative in 2010 and lost in the primary. Many of these posts are based on writing that I did for that election. Rather than delete it all, I decided to dump it onto the internet.

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