Are the poor getting poorer?

lookout123 · 12-16-2004, 03:10 PM

We hear it all the time "the rich just keep getting richer while the poor get poorer." But according to the Census Bureau that isn't exactly true. The rich are getting richer, but the poor are not getting poorer.

The rich will always continue to get richer, because much of their income is traced to their investments. They have the money that they made 5 and 10 years ago working for them, producing more money, while they continue to receive pay raises relatively in line with the rest of America.

The only way to make the statement that the poor are getting poorer true, is to take the mean average income from 2000 and compare that to 2003. That comparison does show a 7.8% mean income reduction in the lowest 20% of income earners, compared to a 6.07% reduction for the top 5%, and a 3.3% reduction for themiddle fifth of the population.
In inflation adjusted $$ the bottom fifth made $854 less in 2003 than they did in 2000, while the top 5% makes $16,370 less for the same time periods. Interestingly, the most stable groups are the 3rd and 4th Fifths - the so called middle class.

Basically, the rich are getting richer - but so are the poor. The poor just see their income rise more slowly, which again can be partially attributed to their lack of income from invested moneys. If you look at the chart below you will see that the percentage of income that each fifth of the american population receives hasn't changed much in the last 10 years, and not drastically since 1967.

Charts You will have to click on the December 2004 article.

xoxoxoBruce · 12-16-2004, 05:33 PM

OK, those charts are talking about households without a clue as to how many people are in the household or how many of them are working.

richlevy · 12-16-2004, 09:23 PM

According to that chart, the share of aggregate income from all groups except the highest %25 is in a steady decline. From %4.0 in 1967 for the lowest 5th down to %3.4 in 2003. So their share of the pie is %15 smaller. Add to that the double digit increases on health care and college costs, and you begin to get an idea on how they are being squeezed.

lookout123 · 12-17-2004, 10:47 AM

rich, what i see is a slow but steady increase in income for each of the groups with the top 20% increasing the most rapidly. The top 5% are a part of the top 20%, they are just classified for greater clarity, and that top 5% are the ones who receive the highest amount of income from investments, so that makes sense. old money makes new money - the concept of Velocity of money.

Healthcare and higher education costs have increased drastically though, i'll grant you that.

12-16-2004, 03:10 PM	#1
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	Are the poor getting poorer? We hear it all the time "the rich just keep getting richer while the poor get poorer." But according to the Census Bureau that isn't exactly true. The rich are getting richer, but the poor are not getting poorer. The rich will always continue to get richer, because much of their income is traced to their investments. They have the money that they made 5 and 10 years ago working for them, producing more money, while they continue to receive pay raises relatively in line with the rest of America. The only way to make the statement that the poor are getting poorer true, is to take the mean average income from 2000 and compare that to 2003. That comparison does show a 7.8% mean income reduction in the lowest 20% of income earners, compared to a 6.07% reduction for the top 5%, and a 3.3% reduction for themiddle fifth of the population. In inflation adjusted $$ the bottom fifth made $854 less in 2003 than they did in 2000, while the top 5% makes $16,370 less for the same time periods. Interestingly, the most stable groups are the 3rd and 4th Fifths - the so called middle class. Basically, the rich are getting richer - but so are the poor. The poor just see their income rise more slowly, which again can be partially attributed to their lack of income from invested moneys. If you look at the chart below you will see that the percentage of income that each fifth of the american population receives hasn't changed much in the last 10 years, and not drastically since 1967. Charts You will have to click on the December 2004 article. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

12-16-2004, 05:33 PM	#2
xoxoxoBruce The future is unwritten Join Date: Oct 2002 Posts: 71,105	OK, those charts are talking about households without a clue as to how many people are in the household or how many of them are working. __________________ The descent of man ~ Nixon, Friedman, Reagan, Trump.

12-16-2004, 09:23 PM	#3
richlevy King Of Wishful Thinking Join Date: Jan 2001 Location: Philadelphia Suburbs Posts: 6,669	According to that chart, the share of aggregate income from all groups except the highest %25 is in a steady decline. From %4.0 in 1967 for the lowest 5th down to %3.4 in 2003. So their share of the pie is %15 smaller. Add to that the double digit increases on health care and college costs, and you begin to get an idea on how they are being squeezed. __________________ Exercise your rights and remember your obligations - VOTE! I have always believed that hope is that stubborn thing inside us that insists, despite all the evidence to the contrary, that something better awaits us so long as we have the courage to keep reaching, to keep working, to keep fighting. -- Barack Hussein Obama

12-17-2004, 10:47 AM	#4
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	rich, what i see is a slow but steady increase in income for each of the groups with the top 20% increasing the most rapidly. The top 5% are a part of the top 20%, they are just classified for greater clarity, and that top 5% are the ones who receive the highest amount of income from investments, so that makes sense. old money makes new money - the concept of Velocity of money. Healthcare and higher education costs have increased drastically though, i'll grant you that. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

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