How much wealthier are the wealthy than you?

[obxhead]

The rich are much richer than you and me

NEW YORK (CNNMoney.com) -- The gap between the rich and the middle class is larger than it has ever been due to the bursting of the housing bubble.

The richest 1% of U.S. households had a net worth 225 times greater than that of the average American household in 2009, according to analysis conducted by the Economic Policy Institute, a liberal think tank. That's up from the previous record of 190 times greater, which was set in 2004.

The widening gap came even as wealthy households' average net worth tumbled 27% -- to about $14 million -- between 2007 to 2009. That's the first time that they suffered a decline since the three-year period of 1992 to 1995.

Meanwhile, the average family's net worth plunged 41% -- to just $62,200 -- from 2007 to 2009, according to EPI's calculations.

http://money.cnn.com/2010/12/23/pf/rich_wealth_gap/index.htm

I would LOVE to just get to the average American net worth. Government handouts to the wealthy need to be stopped. They have enough!

[Angry Dragon]

1. I could not even afford to pay their animal feed bills

[SharonAnn]

2. An example, my husband's niece. Actual story.

We were visiting in Santiago, Chile and expected to see them but they were late arriving in Chile because:

Their new yacht (built in Ireland) had been delivered to the Panama Canal with a training crew.

My niece and her husband went with their crew to board the yacht and take it on a "shake-down" or training cruise down the coast of South America with the training crew and expected to meet us in Santiago..

The delivery to Panama was a little late and weather slowed the travel, so their arrival in Chile was delayed.

We missed seeing them due to that.

That's when I first realized the unimaginable wealth of some people.

[hfojvt]

3. their average seems high

considering that 40% of households have less than $25,000 in wealth, from the 2002 census survey

Of 110,052,000 households

16.9% - zero or negative
9.3% - 1-$5,000 _____ bottom 25%
4.8% - 5- $10,000
7.6% - 10 - $25,000 ______ bottom 40%
8.5% - 25 - $50,000
12.9% - 50 - $100,000 ______ bottom 60%
20.3% - 100 - $250,000 ______ bottom 80%
11.1% - 250 - $500,000
8.5% - over $500,000


by using a mathematical average, that allows the wealth of the top 1% to pull the average up even though very many are not as wealthy as that average. Although the median does seem close to $52,000 in 2002, but it seems like an odd median when 80% of the bottom half are at less than half of the median.

[pampango]

4. And we're one of the few developed countries where the disparity is getting worse.

UK: Gini went from 36.8 in 1999 to 34 in 2005.

http://www.indexmundi.com/united_kingdom/distribution_of_family_income_gini_index.html

Germany: It went from 30 in 1994 to 27 in 2006.

http://www.indexmundi.com/germany/distribution_of_family_income_gini_index.html

Sweden: It went form 25 in 1992 to 23 in 2005.

http://www.indexmundi.com/sweden/distribution_of_family_income_gini_index.html

The US: It went from 42 in 1997 to 45 in 2007. In the 1990's our distribution of income was much more inequitable than any European country and has gotten much worse while their has actually improved further in the past 15 years or so.

[obxhead]

5. Interesting links. Thanks nt

[robinlynne]

8. And the gap in some third world countries is also getting better, Brazil for example.

[pampango]

9. Brazil indeed went from a GINI of 60.7 in 1998 to 56.7 in 1995.

Still quite high but heading in the right direction.

http://www.indexmundi.com/brazil/distribution_of_family_income_gini_index.html

Venezuela: from 49.5 in 1995 to 41 in 2009.

http://www.indexmundi.com/venezuela/distribution_of_family_income_gini_index.html

Chile: from 57.1 in 2000 to 54.9 in 2003.

http://www.indexmundi.com/chile/distribution_of_family_income_gini_index.html

This does make the US really stand out as a country heading in the wrong direction.

[malaise]

6. Cenk is talking about this right now

on Ed's program

[Amonester]

7. A widening gap that, if never is 'seriously' dealt with (e.g., reduced)

will inevitably lead to this 'uL eat the dead' http://video.google.com/videoplay?docid=1296155071179146825#">horrific vision. (Soylent Green - between 1:00:00 and end).

But hey, saint-compromise reigns supreme.