Are you Better Off in 2022 than You Were in 2010?

I can tell you now, I know I am better off now than then. I believe most of us are better off now.

In 2010, I was working out of state after renting a room from Charlie in Cazenovia, NY. I was working for the Germans running a purchasing department. In 2010 and after several years of unemployment, a Republican Congress decided to end unemployment. Basically, they tossed people who were out of work, had no healthcare, or monthly payments for children, etc. out on the street. Tough luck!

A new commenter by the name of TBone made the same comparison between 2008 and 2010 about how people were treated then and now. Joe Biden is responsible for this change. I know it sounds like a political speech. I am not a big fan of Biden after what he did to students and their loans since 1980ish. By his stimulus packages, the wealth of the lowest 50% doubled from 2019 to 2021. I wrote about this phenomenon earlier this week.

Senator Sanders: “In 1989, the bottom 50% held 4% of the wealth. By 2019 the 50% held 2% of the wealth. Let’s get to the real story.”

As detailed in the graph on that post I linked to, the last several years have not been an economic disaster for the bottom 50 percent of U.S. households. We can easily see they were experiencing the best time now than during the past 30 years. No, America’s bottom 50% are not living high on the hog enjoying the best pork cuts as taken from the back and upper legs. What has been experienced under Democrats Biden’s policies is a doubling of the net worth of the poorer 50 percent since the first quarter of 2020. It is now far higher than it’s ever been in U.S. history.

Wages have not been decreasing in real terms due to inflation. Even as prices have gone up, wages have mostly kept pace. Real median wage increased sharply at the beginning of the pandemic. It has since fallen sharply and is now almost exactly the same as during the first quarter of 2020. Guess the Fed Increases have been working. The Fed is increasing the Fed Rate again.

Half the increase in wealth is due to an increase in housing equity. Mostly due to the run-up in home prices and inflation reducing the value of fixed-rate mortgages. The federal government’s fiscal policy provided large amounts of financial support to the bottom 50 percent via the 2020 CARES Act, expanded unemployment benefits, and the 2021 Child Tax Credit, plus more. Together with low unemployment and increased worker leverage, this provides much of the explanation as to why.

After an attempt to overthrow the government in 2020, failing to do so, Republicans are lying about the economy. Many people who do not know better are believing them and trump.

Anyway, pretty good speech by Barack Obama in Phoenix Arizona. About 24 minutes long. You might want to listen to it.

The Wealth of America’s Bottom 50% Doubled,” Angry Bear.