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> Inequality is higher than ever and the people making the most money need it the least. In 2016, for the first time in a while, the middle class grew (in the

> Inequality is higher than ever and the people making the most money need it the least. In 2016, for the first time in a while, the middle class grew (in the USA, anyway): https://money.cnn.com/2018/04/12/news/economy/middle-class/index.html https://money.cnn.com/2018/04/12/news/economy/middle-class/i... . Also, we're seeing real median incomes that we haven't seen for over 20 years: https://seekingalpha.com/article/4231615-november-2018-median-household-income https://seekingalpha.com/article/4231615-november-2018-media...

TomMckenny 8y ago
Those trends began 2011 not 2016. But it's nice the preliminary data shows they may be continuing. But inequality continues to grow at an alarming rate with almost all economic growth going to asset value not wages. Likewise, the cost for necessary goods such as housing, medicine etc far out pace wages.
- defertoreptar 8y ago
  > Those trends began 2011 not 2016. I'm not sure I'd call that totally accurate. Real wages have been increasing since the Great Recession turned around. That's true. However, it is continuing to increase past the point of previous highs. The middle class inflex happened in 2016, although there doesn't seem to be data since then.
bitxbitxbitcoin 8y ago
The middle class growing isn't mutually exclusive with inequality (GINI coefficient) getting worse.
- defertoreptar 8y ago
  Growing the middle class raises the Lorenz curve in the center. That, in turn, lowers the GINI coefficient.
  - jlarocco 8y ago
    It can lower the GINI, but it hasn't been. GINI's been increasing for decades, and was still increasing as of 2016: https://fred.stlouisfed.org/series/SIPOVGINIUSA https://fred.stlouisfed.org/series/SIPOVGINIUSA
    - defertoreptar 8y ago
      That is interesting that the GINI didn't inflex with the middle class in 2016. It would be good to see more data. Apparently the World Bank doesn't compute it too often.
      - TomMckenny 8y ago
        If wages increases are less than GDP growth rate, the GNI must rise. The situation for the last 40 or so years.
        defertoreptar 8y ago
        The middle class income earners tend to have retirement accounts, don't they?
        TomMckenny 8y ago
        That would be one of the places wages are allocated after they are received. It is not relevant to take home pay. And of course retirement saving are stunningly in adequate for the vast majority. Likely because anyone who wants to save has to compete with people who don't and will work for a lower salary. It should also be noted that in the past, employees frequently received pensions which rival their take home in total value. And even though pensions have disappeared, wages remain flat.

TomMckenny 8y ago

Those trends began 2011 not 2016. But it's nice the preliminary data shows they may be continuing. But inequality continues to grow at an alarming rate with almost all economic growth going to asset value not wages. Likewise, the cost for necessary goods such as housing, medicine etc far out pace wages.

defertoreptar 8y ago
> Those trends began 2011 not 2016. I'm not sure I'd call that totally accurate. Real wages have been increasing since the Great Recession turned around. That's true. However, it is continuing to increase past the point of previous highs. The middle class inflex happened in 2016, although there doesn't seem to be data since then.

bitxbitxbitcoin 8y ago

The middle class growing isn't mutually exclusive with inequality (GINI coefficient) getting worse.

defertoreptar 8y ago
Growing the middle class raises the Lorenz curve in the center. That, in turn, lowers the GINI coefficient.
- jlarocco 8y ago
  It can lower the GINI, but it hasn't been. GINI's been increasing for decades, and was still increasing as of 2016: https://fred.stlouisfed.org/series/SIPOVGINIUSA https://fred.stlouisfed.org/series/SIPOVGINIUSA
  - defertoreptar 8y ago
    That is interesting that the GINI didn't inflex with the middle class in 2016. It would be good to see more data. Apparently the World Bank doesn't compute it too often.
    - TomMckenny 8y ago
      If wages increases are less than GDP growth rate, the GNI must rise. The situation for the last 40 or so years.
      - defertoreptar 8y ago
        The middle class income earners tend to have retirement accounts, don't they?
        TomMckenny 8y ago
        That would be one of the places wages are allocated after they are received. It is not relevant to take home pay. And of course retirement saving are stunningly in adequate for the vast majority. Likely because anyone who wants to save has to compete with people who don't and will work for a lower salary. It should also be noted that in the past, employees frequently received pensions which rival their take home in total value. And even though pensions have disappeared, wages remain flat.