HomeLatest ThreadsGreatest ThreadsForums & GroupsMy SubscriptionsMy Posts
DU Home » Latest Threads » Forums & Groups » Main » Good Reads (Forum) » The 99 percent are still ...
Introducing Discussionist: A new forum by the creators of DU

Tue Feb 12, 2013, 06:16 PM

The 99 percent are still in recession

President Obama's State of the Union speech will reportedly address the problems of the middle class, which has not fared well in this economy. Practically the only people who have fared well are the notorious one percent. To paraphrase the late New York City Mayor Ed Koch: How are they doin'?

Astoundingly well. Emmanuel Saez, the Berkeley economist who (with Thomas Piketty, an economist at the …cole d'economie de Paris) first mapped the enormous 34-year run-up in income share for America's top 1 percent, came up last year with a statistic that was widely quoted by people who care about rising income inequality. In 2010, the first year of economic recovery after the 2009-2010 recession, 93 percent of all pre-tax income gains went to the top 1 percent, which in that year meant any household making more than about $358,000. This was, I quipped at the time, a members-only recovery. No 99-percenters need apply. Saez has now updated this statistic to include 2011. When you look at the economic recovery's first two years, the top one percent (which by 2011 meant any household making more than about $367,000) captured 121 percent of all pre-tax income gains.

How is it even possible for the one percent to capture more than 100 percent of all income gains since the last recession? Looked at from one point of view, it's not. It is enough to say that in 2010 and 2011 all of the recovery went to the one percent. If you were in the bottom 99 percent, as by definition nearly all of us are, you didnít see a dime of that recovery.

What did the bottom 99 percent see? Over 2010 and 2011, it saw, on average, a slight net decline in pre-tax income of 0.4 percent. This "negative growth" is what, at least theoretically, boosts the one percent's share of income gains from 100 percent to 121 percent. If you think of income distribution as a Pac-Man game, with the one percent as Pac-Man, imagine your Pac-Man consuming all the pac-dots in one game and then somehow, after youíve left the arcade, gobbling up some of the pac-dots in the next playerís game too. Another way to put it is that the one percent didnít just gobble up all of the recovery during 2010 and 2011; it put the 99 percent back into recession.

http://www.newrepublic.com/article/112397/one-percent-gobbles-economic-recovery

4 replies, 812 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 4 replies Author Time Post
Reply The 99 percent are still in recession (Original post)
Redfairen Feb 2013 OP
MannyGoldstein Feb 2013 #1
malthaussen Feb 2013 #2
kenny blankenship Feb 2013 #3
Libelfred Feb 2013 #4

Response to Redfairen (Original post)

Tue Feb 12, 2013, 06:39 PM

1. Nobody seems to listen to this or understand

The number of people in poverty keeps increasing, good people go years without a job, and all we hear about is the stock market going up and the need to starve granny strengthen Social Security.

Feh.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Redfairen (Original post)

Wed Feb 13, 2013, 10:57 AM

2. As always "good economy" means "good for them that's gots."

Remember, Reaganomics worked!

-- Mal

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Redfairen (Original post)

Wed Feb 13, 2013, 12:56 PM

3. That's MY President!

The war on America continued, by alternate means...

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Redfairen (Original post)

Reply to this thread