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> So more people are getting rich than ever. No, the top percentile is, not everyone. That's the problem. Income inequality is getting worse.

quaquaqua1 7y ago
This is correct. Additionally, the median net worth is actually dropping slightly. If the USA has 300m people, the person ranked 150,000,000 had roughly 50k in 2015. Now that ranked person has 48k in 2019.
- kbrackbill 7y ago
  Out of curiosity does that take inflation into account? i.e. is it even lower than 48k in 2015 dollars?
  - quaquaqua1 7y ago
    That's correct, a value of 48k in 2019 dollars is even lower than a value of 50k 2019 dollars. This one single piece of data confirms the "stagnating feeling" of many people who are not rapidly expanding their net worth-- even just maintaining it is good work these days in the face of rising costs of living.
SamReidHughes 7y ago
No, previously some of the top percentile was below $500k. Now they’re all over. And beyond that statistic, the middle class is shrinking because more of them are getting wealthier. This makes incomes more unequal, yes, and it is a good thing.
- kelnos 7y ago
  Ok, I'll bite: how is increasing income inequality a good thing?
  - SamReidHughes 7y ago
    Situation A: You have 1 guy making $100K and 99 guys making $25K. Situation B: You have 10 guys making $100K and 90 guys making $25K. Situation B is better and it has more inequality. That's what we're seeing the past few decades, as people leave the middle class (in an upward direction).
    - user5994461 7y ago
      That's incorrect although an intuitive mistake. The situation A is actually better, for 90% of the people. The single outlier is not relevant when it comes to buying power, he doesn't move the market upward. Housing, food and commodities are needed by everyone so it's fixed by the 99% and accessible to everyone. On the other hand, that's a new market class when there are enough participants like example B. They're going to compete with one another to get all the nicest houses, locations, cars, food, etc... that will be adjusted higher in proportion to what they can pay.
      - SamReidHughes 7y ago
        The people making more are producing more housing, food, and commodities.
        AceJohnny2 7y ago
        They are not. The idea that they would be is called "Trickle-Down Economics" and it's been thoroughly debunked.
      - refurb 7y ago
        But that’s not observed at all. Despite the fact inequality is increasing, the average purchasing power is increasing overall. Sure, in some markets (limited supply of housing) more money just increases prices, but that’s an exception, not the rule.

quaquaqua1 7y ago

This is correct. Additionally, the median net worth is actually dropping slightly. If the USA has 300m people, the person ranked 150,000,000 had roughly 50k in 2015. Now that ranked person has 48k in 2019.

kbrackbill 7y ago
Out of curiosity does that take inflation into account? i.e. is it even lower than 48k in 2015 dollars?
- quaquaqua1 7y ago
  That's correct, a value of 48k in 2019 dollars is even lower than a value of 50k 2019 dollars. This one single piece of data confirms the "stagnating feeling" of many people who are not rapidly expanding their net worth-- even just maintaining it is good work these days in the face of rising costs of living.

SamReidHughes 7y ago

No, previously some of the top percentile was below $500k. Now they’re all over. And beyond that statistic, the middle class is shrinking because more of them are getting wealthier. This makes incomes more unequal, yes, and it is a good thing.

kelnos 7y ago
Ok, I'll bite: how is increasing income inequality a good thing?
- SamReidHughes 7y ago
  Situation A: You have 1 guy making $100K and 99 guys making $25K. Situation B: You have 10 guys making $100K and 90 guys making $25K. Situation B is better and it has more inequality. That's what we're seeing the past few decades, as people leave the middle class (in an upward direction).
  - user5994461 7y ago
    That's incorrect although an intuitive mistake. The situation A is actually better, for 90% of the people. The single outlier is not relevant when it comes to buying power, he doesn't move the market upward. Housing, food and commodities are needed by everyone so it's fixed by the 99% and accessible to everyone. On the other hand, that's a new market class when there are enough participants like example B. They're going to compete with one another to get all the nicest houses, locations, cars, food, etc... that will be adjusted higher in proportion to what they can pay.
    - SamReidHughes 7y ago
      The people making more are producing more housing, food, and commodities.
      - AceJohnny2 7y ago
        They are not. The idea that they would be is called "Trickle-Down Economics" and it's been thoroughly debunked.
    - refurb 7y ago
      But that’s not observed at all. Despite the fact inequality is increasing, the average purchasing power is increasing overall. Sure, in some markets (limited supply of housing) more money just increases prices, but that’s an exception, not the rule.