Friday, September 23, 2016

Getting poorer

Based on market income from wages and capital, a study shows 81% of US citizens are worse off now than a decade ago. In France the figure is 63%, Italy 97%, and Sweden 20%. The numbers for the US and France differ radically once transfer mechanisms like food stamps and Obamacare subsidies are taken into consideration.

If the low economic growth of the past decade continues, the proportion of households in income segments with flat or falling incomes could rise as high as 70 to 80 percent over the next decade. The hardest hit are young, less-educated workers, raising the spectre of a generation growing up poorer than their parents.