People keep on saying the rich keep on getting richer and poor keep on getting poorer?

Question

Yet recent data from the Treasury Department and the IRS shows that most people who were in the proverty bracket just a few years ago has "moved on up" 2 the middle class bracket, & many middle classers are now in the upper class! I just moved from the south where there are few prospects of jobs, inflation has caused rent, utlities, & etc. 2 increase in price. Yet I move 2 the mid-west & there are jobs seasonal, & year round & they are far above the national minimum wage. Although the pay has not increased with the raising of minimum wage it is on average $1.50+ above it.
Is this more of a regional issue than national, & are politicians using the regional statistics rather than National Average for their platforms? Is this because the remaining middle class that has been dwindeling since 2003, after Bush's tax return increase? Is this because of people's perception of this change? We are still considered poor but we aren't. I only work & I can support the family myself. How?

Blastbeatist: Well spoken and thank you for your compliment! After living for 3 years w/o the basics, seriously, we do feel rich indeed. In another 15 years though I agree we will indeed see a change such as what you spoke of.

Answer 1

Princess,
In addition to factors like Meg mentions about the dwindling purchasing parity of the poor because of inflation and the disproportionate profit distribution that came with vastly improved productivity over the past 30 years, there is the problem of defining "poverty".

The Federal government defines the "poverty" line at three times the cost of the Department of Agriculture's stated cost of food for the amount of people per family. The original food bundle was set at a bundle not normally consumed by the average person today (example, I think part of it was 4 eggs a week for an adult female). It was also based on a model in which food was more expensive than other necessities like, for example, housing.

In many regions of the country, standard costs are not the same as they were when this model was first put into use. Oil costs, for example, are a huge percentage of costs for many people who have to commute long distances. Housing in many parts of the country is priced well over the median household incomes for those regions. You won't find such a housing cost problem in the MidWest, for example as you will in the Northeast.

So yes, as Meg said, even with the Fed Gov'ts definition of poverty, the poor have slid even more in purchasing parity overall across the country, but the costs of things other than food have gone much higher over the decades in many regions of the country.

Answer 2

It's true. The middle class is disappearing in the U.S. Wealth distribution has shown that there is a growing divide between the haves and have-nots that has been occurring since the 1980s. I think this is really a national issue. Even though minimum wage has been increased, inflation affects a nation as a whole and a mere 1.50 hike in the minimum wage is not nearly enough to compensate for the prices that we'll face in about 15 years. Even though millions of Americans are still considered in the median income bracket, this will change as labor surpluses become prevalent in markets across the board. Already, college education today is becoming high school education 20 years ago. Scary.

As for your situation, if you can support yourself, I think that's plenty enough. You are by no means considered "poor" if you can support yourself and your family. I believe there is still a strong middle class in America, and we'll only start to see the harmful effects of a growing income disparity in a few decades.

Answer 3

The problem is not just what has happened in the last few years, but that wages have not kept up with productivity growth for the last 30 years.
http://www.visualizingeconomics.com/2007/11/04/has-middle-americas-wages-stagnated/
To make things even worse the wage increases that have occurred have gone to the most educated workers, and unskilled worker have seen their wage decline as adjusted for inflation. It is true that many peoples income increase as the gain more education and experience, but that has always been the case. There have also always been regional variations, but the cost of things other than housing does not vary much from place to place.

Answer 4

of direction the wealthy get richer and undesirable get poorer. the wealthy have been provided that way by utilising making sturdy possibilities and dealing confusing. The undesirable made undesirable existence judgements. under those human beings substitute the wealthy shop doing what made them wealthy and the undesirable shop doing what made them undesirable. How do the undesirable smash the cycle of poverty? 3 strategies: a million. practise: Even undesirable human beings will smash into the middle type by utilising getting a sturdy practise. as an occasion: If a nasty guy or woman gets a diploma in engineering or drugs, he will possibly smash the cycle of poverty for himself. 2. armed forces: regardless of if the undesirable guy or woman would not have the brains or the prospect for procuring a school diploma, he can nevertheless connect the armed forces. the armed forces will instill self-discipline, supply practise, and supply a profession which will smash the cycle of poverty. 3. Capitalism: Even a nasty guy or woman can stay the american dream. Capitalism facilitates all people to initiate their own business enterprise. With a creative and prescient, confusing artwork, and exuberance a nasty youthful capitalist can challenge forth and set up a business enterprise this is efficient. it incredibly is modest in the beginning up, yet as his business enterprise grows so will his assets.

Answer 5

Hi little princess. Its a sad fact of life, but what the treasury department won't tell you is that Bushs tax return increase wasn't really an increase at all. It was more like a "loan" to the people that they had to pay taxes on anyway that year. Also, the treasury department and U.S. government KNOW that whatever class you were born into, there is about a 95% chance that you will stay in that class until the day you die. Sure, America promotes upward movement and affords the people the chances to do that, but the majority seldom do. Why? Exposure to habits and lifestyles as kids. Sad really. Check out the US Census Bureau and Statistics.

Answer 6

It could also have something to do with concentration of wealth in the hands of the upper 1%. Or it could be that the richest 10% of families own 80% of available stocks in publicly traded companies. Or it might have something to do with the 76% drop in the net worth of the poorest 40% of households from 1983-1998.

Answer 7

That's Democrats always going back to Class Warfare politics. Only morons listen to them!