Article Summary: The top 1 percent of Americans: own about 40 percent of the nation's wealth; own half the country's stocks, bonds and mutual funds; have only 5 percent of the nation's personal debt; and take home nearly 25 percent of the income. Meanwhile the bottom 80 percent of Americans own 7 percent of the wealth; the bottom 50 percent own .5 percent of the investments; and the bottom 90 percent have 73 percent of the personal debt.
1. The Wealth and Income Inequality are at Levels Not Seen since the Great Depression
The top 1 percent of Americans: own about 40 percent of the nation's wealth; own half the country's stocks, bonds and mutual funds; have only 5 percent of the nation's personal debt; and take home nearly 25 percent of the income. Meanwhile the bottom 80 percent of Americans own 7 percent of the wealth; the bottom 50 percent own .5 percent of the investments; and the bottom 90 percent have 73 percent of the personal debt.
In 1980, the ratio of CEO to worker salary was 42:1, increasing to 343:1. Among the top 299 companies listed on the S&P 500 index, the CEO salary was $11.4 million while the median salary of the average worker was $33,190. Put another way, that $3.4 billion a year combined income of the 299 CEOs could pay for 102,325 average workers.
2. Sweeping Unemployment Continues
The official unemployment rate is holding around 9.1 percent, meaning there are at least 14 million job seekers competing for jobs. However, the numbers are much larger taking into consideration the 8.8 million part-time workers looking for full-time employment. There are also 2.6 million unemployed who have given up looking for now. According to a recent Gallup poll, 3 in 10 workers are worried that their jobs will be cut.
More than 200,000 public jobs were cut in 2010, adding to the unemployment rolls, and the number of those out of work longer than six months continues to grow. Fewer men have jobs today than anytime since WWII. New jobs are not keeping up with the growing population, and the jobs most available are poor pay, low skill, or temporary. One third of all college grads wind up taking a job that doesn't require a college degree.
3. The Housing Crisis Continues
Foreclosures have resulted in 800,000 repossessed houses in the country. About one third of them are due to people defaulting on government-backed mortgages, meaning they belong to the U.S. taxpayers. Home prices keep dropping and the market is saturated. Yet would be homeowners cannot obtain credit to buy. Many homeowners cannot afford to sell because their mortgage is much more than the house is worth. Some are making "strategic defaults" and have stopped paying their mortgages.
4. The Personal Debt Crisis Continues
The median yearly salary for the average American worker is now a little over $26,000 yet the average household carries over $75,000 in debt. The cost of college education in the U.S. has increased by 900 percent since 1978. Today about two thirds of all college students graduate at least $25,000 in debt. And a new study predicts collective consumer credit card debt will increase by $54 billion in 2011.
5. More Middle Class Americans are Sliding into Poverty
A recent study finds nearly one third of Americans, once part of the middle class as teenagers in the 1970s, have fallen down the economic ladder. More than 40 percent of all jobs in the U.S. are low income jobs. Over one out of five children and one out of six elderly live below the poverty level. Many Americans are combining households; millions are living in budget motels; and homelessness could be spreading to the middle class.
The top 1 percent of Americans: own about 40 percent of the nation's wealth; own half the country's stocks, bonds and mutual funds; have only 5 percent of the nation's personal debt; and take home nearly 25 percent of the income. Meanwhile the bottom 80 percent of Americans own 7 percent of the wealth; the bottom 50 percent own .5 percent of the investments; and the bottom 90 percent have 73 percent of the personal debt.
In 1980, the ratio of CEO to worker salary was 42:1, increasing to 343:1. Among the top 299 companies listed on the S&P 500 index, the CEO salary was $11.4 million while the median salary of the average worker was $33,190. Put another way, that $3.4 billion a year combined income of the 299 CEOs could pay for 102,325 average workers.
2. Sweeping Unemployment Continues
The official unemployment rate is holding around 9.1 percent, meaning there are at least 14 million job seekers competing for jobs. However, the numbers are much larger taking into consideration the 8.8 million part-time workers looking for full-time employment. There are also 2.6 million unemployed who have given up looking for now. According to a recent Gallup poll, 3 in 10 workers are worried that their jobs will be cut.
More than 200,000 public jobs were cut in 2010, adding to the unemployment rolls, and the number of those out of work longer than six months continues to grow. Fewer men have jobs today than anytime since WWII. New jobs are not keeping up with the growing population, and the jobs most available are poor pay, low skill, or temporary. One third of all college grads wind up taking a job that doesn't require a college degree.
3. The Housing Crisis Continues
Foreclosures have resulted in 800,000 repossessed houses in the country. About one third of them are due to people defaulting on government-backed mortgages, meaning they belong to the U.S. taxpayers. Home prices keep dropping and the market is saturated. Yet would be homeowners cannot obtain credit to buy. Many homeowners cannot afford to sell because their mortgage is much more than the house is worth. Some are making "strategic defaults" and have stopped paying their mortgages.
4. The Personal Debt Crisis Continues
The median yearly salary for the average American worker is now a little over $26,000 yet the average household carries over $75,000 in debt. The cost of college education in the U.S. has increased by 900 percent since 1978. Today about two thirds of all college students graduate at least $25,000 in debt. And a new study predicts collective consumer credit card debt will increase by $54 billion in 2011.
5. More Middle Class Americans are Sliding into Poverty
A recent study finds nearly one third of Americans, once part of the middle class as teenagers in the 1970s, have fallen down the economic ladder. More than 40 percent of all jobs in the U.S. are low income jobs. Over one out of five children and one out of six elderly live below the poverty level. Many Americans are combining households; millions are living in budget motels; and homelessness could be spreading to the middle class.
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