The Income Gap Widens

The Income Gap Widens

The Great Recession is not the great American equalizer after all. It ' s been widely reported recently that this recession hit middle and low income families the hardest, while the wealthy have gangling to prosper. It may be chic to save and everyone brags about coupon clipping, but the idea that " we are all in this together " may not actually be the case.
According to the Associated Press, incomes have declined across all demographics, but at a greater scale for middle and lower income groups. " Normal income fell last year from $52, 163 to $50, 303, wiping out a decade ' s worth of gains to hit the lowest level since 1997. " In fact, the gap between the loaded and the fortuneless has widened to the point that the wealthiest ten percent of Americans earned 11. 4 times those below the defect line earning $12, 000 a year. Previously, the highest earning divergence was 11. 22 times higher in 2003.
The unemployment percentage stands at a thirty year high of 9. 7 and a great majority of those job losses have been lower income ones, particularly in construction and manufacturing. While wealthier Americans have had reductions in executive pay, far more of the middle and lower income earners have minus their jobs. This contrast between the flush and the truly needy is more pronounced in larger cities, twin Atlanta, New York and Chicago.
The recession seems to be coming to a close with signs that the economy is somewhere growing. The Commerce Department reported that the economy shrank less than expected, with gross domestic product dipping just 0. 7 percent from April to June, after dropping 6. 4 percent in the first neighborhood of the year ( AP ). Measuring the profit of all goods and services, the GPD is a good barometer of the health of the economy.
The better than natural numbers are attributed to businesses and consumers spending more than expected. The better news is largely credited to the government ' s $787 billion stimulus box and programs analogous Cash for Clunkers. What is not expected to improve anytime right now is the unemployment rate, which analysts opine will distance 10 percent by the end of the year.
As hiring in most sectors remains stagnate and layoffs live on, the gap between the haves and have - nots is likely to widen. Congress is considering ways to regulate executive pay and this along with The Great Recession is not the great American equalizer after all. It ' s been widely reported recently that this recession hit middle and low income families the hardest, while the wealthy have far-off to prosper. It may be chic to save and everyone brags about coupon clipping, but the idea that " we are all in this together " may not actually be the case.
According to the Associated Press, incomes have declined across all demographics, but at a greater rate for middle and lower income groups. " Commonplace income fell carry forward year from $52, 163 to $50, 303, wiping out a decade ' s worth of gains to hit the lowest level through 1997. " In fact, the gap between the loaded and the insolvent has widened to the point that the wealthiest ten percent of Americans earned 11. 4 times those beneath the exigency line earning $12, 000 a year.
The unemployment percentage stands at a thirty year high of 9. 7 and a great majority of those job losses have been lower income ones, particularly in construction and manufacturing. While wealthier Americans have had reductions in executive pay, below more of the middle and lower income earners have kiss goodbye their jobs. This particularity between the loaded and the flat broke is more towering in fitter cities, equivalent Atlanta, New York and Chicago.
The recession seems to be coming to a close with signs that the economy is somewhere growing. The Commerce Department reported that the economy shrank less than expected, with gross domestic product dipping just 0. 7 percent from April to June, after dropping 6. 4 percent in the first district of the year ( AP ). Measuring the profit of all goods and services, the GPD is a good barometer of the health of the economy.
The better than inherent numbers are attributed to businesses and consumers spending more than expected. The better news is largely credited to the government ' s $787 billion stimulus parcel and programs identical Cash for Clunkers. What is not expected to improve anytime double time is the unemployment scale, which analysts accept will span 10 percent by the end of the year.
As hiring in most sectors remains stagnate and layoffs progress, the gap between the haves and have - nots is likely to widen. Congress considering ways to regulate executive pay along with President Obama suggesting higher taxes on the wealthy as one the ways to pay for health care reform, the resentment between the two ends of the income spectrum may also increase. While the Great Recession is the worst state the economy has been in since the Great Depression, some Americans are faring better than others.