How the rich are getting richer

US-BLS-Income-Expenditures-by-income-groupChart from Wolf Street.

This chart gives an indication as to why the U.S. economy is dragging and why income is flowing upward.

Over the eight years ending in 2012, Americans with incomes of $150,000 a year and up spent, as a group, roughly the same amount of money that Americans with incomes of less than $30,000 a year spent, as a group.

But the spending of the $150,000-plus group was well under their total income, so they were able to save and add to their total wealth.  The spending of the $30,000-minus group was above their income, and had to be supporting by borrowing.  That’s why the upper brackets generally get richer, and the lower brackets seldom do.

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3 Responses to “How the rich are getting richer”

  1. Deb Meeker Says:

    It’s like watching a slowly unfolding disaster movie, except no popcorn, nor apparent political will to change the plot.

    Like

  2. prayerwarriorpsychicnot Says:

    Reblogged this on Citizens, not serfs and commented:
    So why don’t our politicians admit this? That 5 people employed on 30k will do more to boost the economy than one person on 150k.

    Like

  3. whungerford Says:

    The money saved was mostly invested in non-productive enterprises.

    Like

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