Friday, March 7, 2014

See Just How Little Our Government Cares About the Little People

Every once in a while, I come across an article on Yahoo!’s home page that’s actually worth reading.

Even rarer are the times when one is worth commenting on. But this one is so interesting that I’m pretty much just going to paste the lead below and let you click the link to read the rest, should you so choose, to see just how little our government cares about the little people.

“America is rich again – if you add up all the money. But a familiar, unhappy tale is playing out as the nation recovers the household wealth lost from 2007 to 2012.

“The total amount of household net worth hit a new record of $80.7 trillion at the end of 2013, according to the Federal Reserve. That’s certainly better than the grueling declines that occurred during the twin housing and stock-market busts. But a deeper look at the numbers shows that the kind of wealth held primarily by the affluent – financial assets – has soared beyond prior levels, while the most common middle-class asset – home equity – is still far below prior highs.

“Here are the numbers:

Total amount of financial wealth now: $66.9 trillion. Pre-recession high: $54.3 trillion (third quarter of 2007). Change since then: 23% increase.

Total amount of real-estate wealth now: $22 trillion. Pre-recession high: $25 trillion (fourth quarter of 2006). Change since then: 11.9% decline.

“The changes aren’t quite as stark if you adjust for inflation:

Total change in real financial assets from the pre-recession peak: 9.7% increase.

Total change in real real-estate assets: 7.8% decline.

“Still, it’s clear the more securities and other financial assets you have, the more you’ve benefited from the asset relation that has come at least in part from the Fed’s super-easy-money policies. When you factor in homeownership rates, the flow of wealth to upper-income Americans may be even greater…”

If you don’t have the time to read the rest of the article, let me break it down for you…

In its high-handed pursuits, our government might like to say – and possibly even think – that it’s helping the little people. But the only ones who are really benefiting are the rich. 

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