Things Are Great - The Poor Are Getting Richer

[EV_Ares]

Hey, according to the WSJ, the economy is good for the poor too.

A subscription only, so just some excerpts for you to read & a link to the article.

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The Poor Get Richer
May 23, 2007; Page A16
It's been a rough week for John Edwards, and now comes more bad news for his "two Americas" campaign theme. A new study by the Congressional Budget Office says the poor have been getting less poor. On average, CBO found that low-wage households with children had incomes after inflation that were more than one-third higher in 2005 than in 1991.

The CBO results don't fit the prevailing media stereotype of the U.S. economy as a richer take all affair -- which may explain why you haven't read about them. Among all families with children, the poorest fifth had the fastest overall earnings growth over the 15 years measured. (See the nearby chart.) The poorest even had higher earnings growth than the richest 20%. The earnings of these poor households are about 80% higher today than in the early 1990s.

The poor took an earnings dip when the economy went into recession at the end of the Clinton era, but data from other government reports indicate that incomes are again starting to rise faster than inflation as labor markets tighten and the current economic expansion rolls forward.

http://online.wsj.com/article/SB117988547410811664-search.html?KEYWORDS=poor+getting+richer&COLLECTION=wsjie/6month


Also:

U.S. Mortgage Applications Rise Despite Higher Costs

http://www.cnbc.com/id/18815779


Also, according to CNBC, gas is cheaper now when equated with inflation costs some years back. Also they go on about how high it is in Europe but leave out the fact that Europe has great/fantastic mass transit systems for people to get around and they don't have to drive there like we do here.

So, everybody, things are really great.

[Missy M]

1. I guess the approximately 3.00 more an hour in minimum wage...

since the early 1990's accounts for the poor's new found riches. They now went from $8,000. a year to $13,000. a year, approximate figures. What on earth are they doing with all that money.

[EV_Ares]

2. Probably wasting it on food, gas and healthcare. eom.

[durablend]

7. Bon-Bons and purple Cadillacs!

YEE-HAW...WE'S REALLY ROLLIN NOW!

[Richard Steele]

4. And of course, the cost of living hasn't changed at all since 1991.

"Lies, damn lies, and statistics"- they hit the Twain Trifecta with this story.

[KatyaR]

10. THAT's who's buying all these McMansions they're building around here.

I wondered who could afford those prices--now I know!!

DU is educational in sooo many ways . . . . :evilgrin:

[trotsky]

3. "when the economy went into recession at the end of the Clinton era"

Damn they just will never give up on that lie, will they?

Recession started March 2001. Newsflash to the WSJ: Clinton was not president then.

[SharonAnn]

5. I'm more interested in how they've done from 2001 to 2007. Bush's years, not Clinton's.

[idlisambar]

6. 1991

Convenient benchmark year -- right in the middle of a recession.

On average, CBO found that low-wage households with children had incomes after inflation that were more than one-third higher in 2005 than in 1991.

[pansypoo53219]

8. ooh!

what velvety calculations!

[applegrove]

9. There are also fewer young people demographically. Again from 1991.

Remember how Rudy stopped crime in NYCity by waving his magic want..and a little help from the fact that there were fewer kids and young adults around to comit those crimes?

Baby boomers got old and wages rose.