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Top 1% now owns more of the wealth than the remaining 99%

theguardian.com

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Re: Top 1% now owns more of the wealth than the remaining 99%

#21

Post by prostoalex »

According to census.gov http://blogs.census.gov/2013/03/21/household-wealth-and-debt... at least in the US "changes in overall median net worth observed over the past decade have been driven primarily by changes in one of its major components – equity that American households hold in their homes".

The recipe for greater wealth equality is to subsidize mortgages and restrict new construction, so that everybody's house values move up a notch, which makes everyone feel a little bit better about themselves.

Re: Top 1% now owns more of the wealth than the remaining 99%

#22

Post by gphil »

mikeash wrote: post #13

> The report defines wealth as the value of assets including property and stock market investments, but excludes debt. How does this make the slightest bit of sense? Counting property but ignoring debt is going to exaggerate the wealth of many Americans by an order of magnitude, for example. Beyond that, one person's debt is another person's investment, so you're double counting all that money.

I think they mean they are subtracting debt, though I agree that isn't clear.

Re: Top 1% now owns more of the wealth than the remaining 99%

#23

Post by wavefunction »

elcct wrote: post #14
Mimick wrote: post #7

Earlier quoted context omitted.

It's fine for some to own nothing in order to have bigger economy on the whole world? Who are we competing with Mars? What a billionaire need more than billion for anything? You comment just funny since it's the perfect billionaire's first world problem.

Who are you to decide who needs what?

The point is that we should all be deciding what we all need.

To your point, who are the very wealthy to decide who needs what all on their lonesome?

Re: Top 1% now owns more of the wealth than the remaining 99%

#24

Post by breischl »

mikeash wrote: post #13

> The report defines wealth as the value of assets including property and stock market investments, but excludes debt. How does this make the slightest bit of sense? Counting property but ignoring debt is going to exaggerate the wealth of many Americans by an order of magnitude, for example. Beyond that, one person's debt is another person's investment, so you're double counting all that money.

I think the Guardian article meant that they had subtracted debt from assets, but they stated it in a confusing way. The original report states:

  Once debts have been subtracted, a person needs only USD 3,210 to be among the wealthiest 
  half of world citizens in mid-2015. However, USD 68,800 is required to be a member of the 
  top 10% of global wealth holders, and USD 759,900 to belong to the top 1%.
Which is more clearly stated and uses the same numbers as the Guardian article.

See page 11 from: https://publications.credit-suisse.com/tasks/render/file/?fi...

Re: Top 1% now owns more of the wealth than the remaining 99%

#25

Post by ThomPete »

dollar wrote: post #3

Who cares about socialist propaganda like this? There is no evidence that "equality" in the distribution of wealth is good for middle class and low income persons. For example, if the distribution were more equal on a relative basis, but all brackets had less money than before, is that supposed to be an improvement?

No but thats not the only outcome and it's disingenuous to try and cherry pick one just so that you can make a overly simplistic point.

The Scandinavian countries re-distribute their wealth quite heavily and yet are still some of the richest countries in the world. I.e. everyone is better off.

Re: Top 1% now owns more of the wealth than the remaining 99%

#26

Post by toomuchtodo »

prostoalex wrote: post #17
tveita wrote: post #12

Earlier quoted context omitted.

People who work hard and contribute to the economy but still live paycheck to paycheck due to stagnant wages care. It's an extraordinary proposition that sifting more money to the top instead of paying people fair wages would somehow help the economy. Turning your example on the head: what if making the distribution more equal would in the long term give all brackets more money, even the very rich ones? Would you the…

Well, according to this report, if you have two families both earning exactly the same (by contributing to the economy in the same manner), but one has $50,000 in the bank, while another has used that $50,000 to put a down payment on a house (perhaps by assuming a $200,000 mortgage), the wealth disparity between the two is enormous. Debt (when used prudently) is a useful financial instrument and an enabler. In low-ra…

> Debt (when used prudently) is a useful financial instrument and an enabler. In low-rate environment are we really that surprised it's being used extensively?

Not surprising, of course. I think the difference is, central banks expected the ZIRP to be a chainsaw used to clear enough space for a village, not tear down the entire forest.

Re: Top 1% now owns more of the wealth than the remaining 99%

#27

Post by toomuchtodo »

elcct wrote: post #14
Mimick wrote: post #7

Earlier quoted context omitted.

It's fine for some to own nothing in order to have bigger economy on the whole world? Who are we competing with Mars? What a billionaire need more than billion for anything? You comment just funny since it's the perfect billionaire's first world problem.

Who are you to decide who needs what?

The majority of citizens in a democracy decide what the economic rules are.

Re: Top 1% now owns more of the wealth than the remaining 99%

#29

Post by vlehto »

Diamons wrote: post #6
dollar wrote: post #3

Who cares about socialist propaganda like this? There is no evidence that "equality" in the distribution of wealth is good for middle class and low income persons. For example, if the distribution were more equal on a relative basis, but all brackets had less money than before, is that supposed to be an improvement?

The wealth distribution is remarkably skewed. Today it might not mean anything but give it a few years of people having no money yet having bills, loans, mortgages, etc. to pay with no possibility of retirement and you have yourself a prime situation for another French revolution or oppressive police state. It's not something that you can just let sit, it's going to get bloody if it is not addressed soon. We have see…

It wont happen. Both parties are just waiting for the right price to buy those votes.

Democracy exists for stability on national and international levels. Everything else is just a side effect.

Re: Top 1% now owns more of the wealth than the remaining 99%

#30

Post by deathanatos »

prostoalex wrote: post #21

According to census.gov http://blogs.census.gov/2013/03/21/household-wealth-and-debt... at least in the US "changes in overall median net worth observed over the past decade have been driven primarily by changes in one of its major components – equity that American households hold in their homes". The recipe for greater wealth equality is to subsidize mortgages and restrict new construction, so that everybody's house…

And what of those that don't own a home already?
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