Federal Reserve: How the Lower 90% Have Been Screwed

September 12th, 2014
in News, econ_news, syndication

Econintersect:  The Federal Reserve has published its triennial survey of consumer finances.  If the report mirrored the financial condition of most Americans it should be shrinking.  But the report is thorough and only gets longer.  The data is not going to surprise many but the American dream has been withering and is a nightmare for some.  The graph below is one of many in the report but is one of the most important for an overview of the American situation.

Click for wider image.

Follow up:

Both the top 3% and the bottom 90% of incomes were set back by recesssions.  The top 1% recovered and surged ahead after each setback (not quite ahead by end of 2013).  The lower 90% failed to recover to pre-recession levels.  Those in the very upper middle class and lowerer regions of the wealthy class (90% to 97% of distribution) were both less affected by recessions and also showed little income increase in recovery.

As of 2013, compared to 1989:

  • The top 3% has increased income share by 22% (25% of total increased to 30.5%).
  • The next to top group (90% to 97%) has not changed share.
  • The bottom 90% has decreased income share by 9% (58% of total decreased to 52.7%).

Click to read complete report.

See also further discussion by Lance Roberts at StreetTalk Live.

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

 navigate econintersect.com


Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved