The Ignorant Investor
Ignorance Can't Stand in the Way of My OpinionSunday, September 18, 2005
America Co.: Where are the profits going?
The Census Bureau's annual report came out least week, and according the Wall Street Journal the report had this to say:
Summary: Good economy overall, but more of the profits of this big economic engine we call America are going to the top fifth percent of the workers. I don't know what effect this movement will have on the nation over the next couple of decades, but from a personal standpoint, it's bad for people like me. I'm very middle class, and it seems like there's a relentless downward pressure on wages that is going to hurt a lot of people unless something changes soon.
Although the U.S. economy grew robustly last year, the income of the median household slipped a bit, wages of full-time workers fell, the number of Americans living below the poverty line rose and more Americans went without health insurance, the Census Bureau said in its annual report on consumer income.
The snapshot suggests that the recovering economy, while adding jobs and showing productivity gains since the recession of 2001, isn't paying dividends to everyone. The economy grew by a healthy 3.8% in 2004, but the new Census Bureau report underscores that one unusual feature of the recovery has been sluggish gains in income for many, particularly at the bottom and middle. The share of all income going to the top fifth of households rose slightly to 50.1% last year, matching the 2001 high and well above the 45.2% reported in 1984, the bureau said.
Summary: Good economy overall, but more of the profits of this big economic engine we call America are going to the top fifth percent of the workers. I don't know what effect this movement will have on the nation over the next couple of decades, but from a personal standpoint, it's bad for people like me. I'm very middle class, and it seems like there's a relentless downward pressure on wages that is going to hurt a lot of people unless something changes soon.
posted by Worker 17 # 1:09 PM 
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