Gyroscopic Investing

The richest Americans were hit hard by the financial crisis. Their incomes fell more than 36 percent in the Great Recession of 2007-09 as stock prices plummeted. Incomes for the bottom 99 percent fell just 11.6 percent, according to the analysis.

The income figures include wages, pension payments, dividends and capital gains from the sale of stocks and other assets. They do not include so-called transfer payments from government programs such as unemployment benefits and Social Security.

WildAboutHarry wrote:

The richest Americans were hit hard by the financial crisis. Their incomes fell more than 36 percent in the Great Recession of 2007-09 as stock prices plummeted. Incomes for the bottom 99 percent fell just 11.6 percent, according to the analysis.

I don't recall reading any lamentations in the press in 2009 about this factiod.

The income figures include wages, pension payments, dividends and capital gains from the sale of stocks and other assets. They do not include so-called transfer payments from government programs such as unemployment benefits and Social Security.

So we don't count $800 billion (SS only) plus?  That is way more than total dividends paid per year by the S&P 500 (assuming hasty internet research is correct).

Being able to earn capital gains, dividends, bond interest, etc. implies: 1) Saving and 2) Risk taking (see first quote above).

Ad Orientem wrote: As interest rates look to continue rising, corporations are rushing to raise money from still below average rates while they can.

No surprise here. The rich are getting richer while most middle and working class incomes remain stagnant or are declining. The top 10% of earners took home almost 50% of all income last year.

Stock dividends are signalling economic growth.

Kshartle wrote: I'm afraid the inequality is going to get worse. And the poor are going to be living increasingly more difficult lives. The poor today live very well compared to poor 80 years ago but I think it's going to head back the other way for a bit.

No doubt the government will dream up new programs to fight inequality. Their programs always backfire though and we'll just end up with more poor.

They need to back off and let capitalism solve this inequality problem. Even if it gets more unequal with freedom everyone will be so much better off (poor & middle) they won't care. They will just know their lives are a lot better than their parents and their kids lives are going to be a lot better. No revolutions or clashes because their won't be big groups of volatile people suffering.