http://news.yahoo.com/s/ap/20070308/ap_on_bi_go_ec_fi/fed_household_finances_1
Maybe we aren't in debt quite as badly as we thought?
Maybe we aren't in debt quite as badly as we thought?
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Net worth of U.S. households skyrockets
- Thread starter ntdz
- Start date
ProfJohn
Lifer
As typical any good economic news is downplayed, but if this figure showed a loss in net worth they would all be blaming Bush for it.
As a country we have been doing amazingly well economically since the 1982 recession ended. Every President since that time has had a good financial and economic record. Unfortunately the hate Bush crowd will dig through all the good data and find the one bad piece of info and use it to prove Bush is a ?failure.?
As a country we have been doing amazingly well economically since the 1982 recession ended. Every President since that time has had a good financial and economic record. Unfortunately the hate Bush crowd will dig through all the good data and find the one bad piece of info and use it to prove Bush is a ?failure.?
HomeAppraiser
Platinum Member
Err yea as usual the top 10% got 90% of that added wealth and the rest of us continue to suck it.
Vic
Elite Member
Which explains why the median credit score has gone up to 723 according to FICO, right?
I grew up in the tough times of the 70s. In the late 80s, Portland was horribly blighted with the homeless crowding the downtown and sleeping/puking in the gutters. Now, for the past 10 or so years, everywhere I look is development and increasing prosperity. New home construction is of infinitely better quality than that built in the 70s and 80s. I hate Bush too, but that doesn't make me blind to what's right in front of my face! (I just give credit to Clinton).
As the former head of the PDC said before he left last year, "Count the cranes!"
Whoozyerdaddy
Lifer
I don't know about you, but I'm not sucking it. My net worth definitely surged the last few years. I cashed in and moved to Maui to fire up a new career.
I don't begrudge anyone their success. And I'm happy to have mine.
imported_Shivetya
Platinum Member
I cannot recall a single President since Reagan who actually had enough pull to affect the economy. He ram rodded his reforms down Congress's throats.
If anything Bush's tax cuts did very well for the economy, but of course the hate Bush moonbats never see the truth, hate blinds them.
Bush ain't no conservative by any means, but his tax policies aren't bad. Now if he would just learn what VETO means and get this runaway government spending down (which he won't - compassion oriented government means hes very good as spending other peoples money)
Nice feel-good article, basically devoid of specifics... excellent fluffery.
What's the mean household net worth? How has that changed over time? How does it break down across the economic and generational spectrum? How much is held in real estate? In the stock market?
Given the increasing spread between the ultra wealthy and the rest of us, this may not be the good news that the Right paints it to be, at all... If growth goes straight to the top and stays there, how does that benefit the rest of us? And if that growth is an illusion, based on massive deficits by the govt and in the balance of trade, what happens when the magic show is over?
What's the mean household net worth? How has that changed over time? How does it break down across the economic and generational spectrum? How much is held in real estate? In the stock market?
Given the increasing spread between the ultra wealthy and the rest of us, this may not be the good news that the Right paints it to be, at all... If growth goes straight to the top and stays there, how does that benefit the rest of us? And if that growth is an illusion, based on massive deficits by the govt and in the balance of trade, what happens when the magic show is over?
blackllotus
Golden Member
Treasury Department says tax cuts will boost growth by only 0.7% in the long run, and thats only if they are made permanent.
CycloWizard
Lifer
This is what I always find amusing - the thought that rich guys never spend any money. An increase in net wealth for a rich guy doesn't somehow mean he's spending less money. Common sense tells me he'll spend the same or more. When he spends money, it ends up in the hands of a not-so-rich guy.
LegendKiller
Lifer
Crap article that doesn't give much detail.
How much of that net worth is in liquid assets?
How much of it is paper worth?
How much of it is held by specific socio-economic buckets?
How much of it is being re-invested?
Why do I ask?
If it's not liquid it can't be reinvested.
If it's not real it can't be spent and it can easily be lost. Even if equity in houses went down doesn't that decrease wasn't offset by the recent run-up of the markets. The net effect can be hidden. Thus, when the market starts really taking a crap because housing woes deepen you'll get a double negative effect. Oops, there goes your increase!
If it's held by higher SES people and is not liquid or being spent, then it's worthless to the economy at this moment
Reinvestment? Are people spending or investing in anything that'll help drive the economy?
Overall, a gross number like that is little more than fluff. The tax cuts did nothing to help the economy. Tax cuts can, at best, temporarily shake people out of malaise, but only if timed at the perfect point. Almost all studies have shown that controlling the economy through fiscal policies is next to worthless and only adds more volitility to the mix. If anything, timed wrong, fiscal policy shifts can actually either delay recovery or at worst harm it by turning it downwards.
Furthermore, tax cuts that lead to sovereign debt have almost no net affect. Essentially you are shifting money from one pocket to the other and claiming you somehow magically created money. It doesn't work like that.
While we may have added net worth in the last 6 years, we have also piled on an additional 3 trillion in sovereign debt, equating to an extra $150BN annual debt cost. So, essentially, in the last 6 years we have spent your 1-trillion dollar short-run stock run-up in JUST debt payments on our national debt.
Essentially, we have just paid for our entire paltry tax cut attributed growth by charging up our credit cards. Furthermore, we pat ourselves on the back for short-run equity run ups and bubble attributed asset appreciations. Then we somehow think that it's all magically created by a great super-duper economy.
You people are really funny.
How much of that net worth is in liquid assets?
How much of it is paper worth?
How much of it is held by specific socio-economic buckets?
How much of it is being re-invested?
Why do I ask?
If it's not liquid it can't be reinvested.
If it's not real it can't be spent and it can easily be lost. Even if equity in houses went down doesn't that decrease wasn't offset by the recent run-up of the markets. The net effect can be hidden. Thus, when the market starts really taking a crap because housing woes deepen you'll get a double negative effect. Oops, there goes your increase!
If it's held by higher SES people and is not liquid or being spent, then it's worthless to the economy at this moment
Reinvestment? Are people spending or investing in anything that'll help drive the economy?
Overall, a gross number like that is little more than fluff. The tax cuts did nothing to help the economy. Tax cuts can, at best, temporarily shake people out of malaise, but only if timed at the perfect point. Almost all studies have shown that controlling the economy through fiscal policies is next to worthless and only adds more volitility to the mix. If anything, timed wrong, fiscal policy shifts can actually either delay recovery or at worst harm it by turning it downwards.
Furthermore, tax cuts that lead to sovereign debt have almost no net affect. Essentially you are shifting money from one pocket to the other and claiming you somehow magically created money. It doesn't work like that.
While we may have added net worth in the last 6 years, we have also piled on an additional 3 trillion in sovereign debt, equating to an extra $150BN annual debt cost. So, essentially, in the last 6 years we have spent your 1-trillion dollar short-run stock run-up in JUST debt payments on our national debt.
Essentially, we have just paid for our entire paltry tax cut attributed growth by charging up our credit cards. Furthermore, we pat ourselves on the back for short-run equity run ups and bubble attributed asset appreciations. Then we somehow think that it's all magically created by a great super-duper economy.
You people are really funny.
Home Appraiser and Jhhnn hit it on the head. What's the distribution of this increase by income/wealth?
It's almost all going to the top, which is not good. It actually hurts most Americans for the rich to get much, much richer when they don't.
ProfJohn fails to note how the republicans have *stolen* the money for the economy since 1982 with their extreme borrowing, let up only by Clinton.
As for the rich spending, it's negligible; they primarily acquire with their wealth.
We need to stop the borrowing from the next generation, stop the corrupt spending on republican cronies, and shift taxes back to a fair distribution.
It's almost all going to the top, which is not good. It actually hurts most Americans for the rich to get much, much richer when they don't.
ProfJohn fails to note how the republicans have *stolen* the money for the economy since 1982 with their extreme borrowing, let up only by Clinton.
As for the rich spending, it's negligible; they primarily acquire with their wealth.
We need to stop the borrowing from the next generation, stop the corrupt spending on republican cronies, and shift taxes back to a fair distribution.
dmcowen674
No Lifer
Maybe we aren't in debt quite as badly as we thought?
[/quote]
Gee you think that a majority of the Country going into foreclose could be construed as a turn for the worse?
brandonbull
Diamond Member
what is the trend for buying power?
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