The Rich Get Wealthy...

[Lumpy 1]

...when Democrats are in control of the economy....The Democrat support and results for the middle-class seems, well, many tads overstated...

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During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%, according to a Pew Research Center analysis of newly released Census Bureau data.

A Rise in Wealth for the Wealthy; Declines for the Lower 93% | Pew Social & Demographic Trends

 

[The Rabbi]

Like no one expected this. Key up for "it's Bush's fault" and other deflections.
Since many middle class retirees depend on fixed income their income has stagnated under 0% interest rates.

 

[NightFox]

During the first two years of the nation’s economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%, according to a Pew Research Center analysis of newly released Census Bureau data.

Part of the reason has to do with the distribution effects of inflation (inflation in it's real sense meaning monetary supply expansion), which given the amount of debt monetization and the long duration artificially low interest rates to support the federal governments insane over-spending spree and it's efforts to support credit expansion has been exacerbated in recent years.

In a nutshell the inflationary distribution effect is a hidden wealth transfer from the poor and middle class to the wealthy, since those that get to spend newly minted greenbacks first (the connected and the wealthy) can deploy it (usually in the form of capital or inflation hedge assets) before the effects of inflation (higher prices) hit the general economy. So those that get their hands on it first have more buying power (and they're buying real assets with it not using it to live on) than those that get their hands on it last.

This is of course not the sole reason for the wealth disparity but it's a significant portion of it.

 

[tinydancer]

The wealthy are intelligent.

The wealthy know when to cut the wheat from the chaff.

The wealthy are brilliant because they know when to bail and keep their dollars to themselves.

 

[NightFox]

The wealthy are intelligent.

The wealthy know when to cut the wheat from the chaff.

The wealthy are brilliant because they know when to bail and keep their dollars to themselves.

Just to point out those that "keep their dollars" in an inflationary economy don't get wealthy, you get wealthy by pocketing some the value that those dollars store (and converting it to real assets) before passing it along to the next guy.

Nobody gets wealthy by stuffing dollars in a mattress (or a checking account), since the longer you hold a dollar the less value it stores.

A simple illustration would be something like this:

If you have ten people standing in line, with the first guy being the wealthiest and going down the line through middle class to the poorest guy at the end of the line. The first guy in line is given a gold coin to pass along to the next guy in line, he takes a 5% slice off pockets the slice and passes it along to the next guy who takes a 5% slice (his slice is smaller than the first guys given that coin is smaller when he got it), so on and so forth, the last guy in line ends up holding a tiny fraction of the original coin. The "slices" that are taken by each person in line represents extracting some of the stored value, which is the same thing that happens to dollars except instead of taking physical slices you are buying things before the general economy feels the full price effects of inflation.

Hopefully that makes sense.

 

[ba1614]

It isn't just the filthy rich either, anyone the combination of a bit of cash, a bit of smarts, and a bit of ambition can profit under difficult economic times, that nearly always coincide with democratic administrations.

 

[Geaux4it]

Like no one expected this. Key up for "it's Bush's fault" and other deflections.
Since many middle class retirees depend on fixed income their income has stagnated under 0% interest rates.

GASP- And with 85 Billion counterfeit dollars being printed monthly that Adolf Obama is afraid to stop? Because his economy blows?

-Geaux