Economic Data Shows Same Old Song, “Richer Getting Richer, Poorer Getting Poorer”

[thenews]

Economic data in the U.S shows that ever since the Great Recession rich families have increased their fortunes, while poor families have seen a cut to their incomes, this is according to the Federal Reserve.

In the three years between 2010 and 2013 alone, average incomes by the wealthy went up at a rate of 10%. The rest of the population saw one of two things-either their incomes remained the same, or their incomes where shrunk. The loss of income occurred, because either workers were being laid-off or, because most of the jobs being created have been part-time jobs. The bottom 20% percent of families saw a reduction of 8% in their income.

Affluent families tend to keep their wealth intact. More money was being spent by the bottom earners collectively and less money was spent by the wealthy. Those families, who belong at the top 10% tier of incomes, saw their fortune go up all the way to $3.3 million, while those who are in the bottom 20% tier, saw their income fall to $65,000.

Evidence shows that the economy is not fully on track, because those who possess large amounts of capital will not expend it, or invest it. The poor performance of the dollar, war conflicts, and the instability of the global economy has scared off investors. Investor confidence has dropped. If investments are not being made, or money is not being spent, a economy is more likely to stagnate. It will not grow, or its growth will be reversed.

The stagnation of the economy will not be alleviated without investment, or without money being spent. The economy needs investments to grow and money to fund such growth. A strong economy will benefit the highest income earning families as well as those families who do not earn a lot of money.

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