Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Seeker Weekly Wrap-Up: Gold and Silver Gain on the Week While Stocks Drop 6%
By: Chris Mullen, Gold Seeker Report

Gold and Silver Possession Is a Constitutional Right - and a Practical Imperative
By: David Smith

Will Gold Breakout? 3 Things to Watch
By: Jordan Roy-Byrne CMT, MFTA

COT Gold, Silver and US Dollar Index Report - March 23, 2018

Hidden No More, The Currency Wars Take Center Stage
By: Nathan McDonald

Trading Barbs Down To The Wire
By: Brady Willett

Gold Juniors’ Q4’17 Fundamentals
By: Adam Hamilton, CPA

GoldSeek Radio Nugget: Bill Murphy and Chris Waltzek

Markets Have Gone “Thelma and Louise”
By: Gary Christenson

Debt Cycles and Gold
By: Arkadiusz Sieron


GoldSeek Web

9.4 Million More Americans Below Poverty Line Than Pre-Crisis [Chart]

 -- Published: Friday, 25 September 2015 | Print  | Disqus 

Courtesy of: Visual Capitalist

What Recovery? [Chart]

9.4 Million More Americans Below Poverty Line Than Pre-Crisis

The Chart of the Week is a weekly Visual Capitalist feature on Fridays.

According to Janet Yellen, we are still on pace to raise rates in 2015. While the rate hike was supposed to happen this month, it got derailed by the August market selloff, volatility in China, lackluster work force numbers, and a variety of other factors.

Despite the Fed continuing to kick this down the road, they continue to claim that we are in the middle of an ongoing recovery. There’s just one problem with that: things are getting worse than pre-crisis levels for millions of the poorest Americans.

It’s true that the wealthiest 10% of Americans have finally seen their household incomes rise above the levels last seen in 2007. It’s also true that median incomes have “recovered” from the worst of the 2008 disaster. Median earners were -8.1% worse off in 2011, and now they are only -6.5% worse off according to most recent data for 2014 released by the U.S. Census Bureau last week.

However, when we look at the lowest 10% of income earners, the situation is much more precarious. In 2011, the bottom 10% of households were -9.0% worse off in terms of income than they were pre-crisis. Since then, it hasn’t gotten any better: they now are making -11.6% less income than they were in 2007.

Possibly even more concerning is the fact that the amount of Americans living below the poverty line has soared since 2007. There are now 9.4 million more people that can claim to be a part of this unfortunate group, and the total contingent living below the poverty line now makes up 14.8% of all Americans. This is also an increase from the 12.5% figure from before the Great Recession.

What’s the difference between 2007 and today? One stark contrast is the fact that the Fed’s balance sheet has exploded by adding $3.5 trillion of phony money to its balance sheet (that’s about the size of Germany’s economy) with its Quantitative Easing (QE) program. As part of the same experiment, it kept rates artificially low at near 0% for a record amount of time to encourage both lending and economic growth.

However, it is seven years later, and we are starting to see the fruits of this experiment especially in terms of wealth inequality. Studies and economists are starting to sound off, noting that QE and ZIRP have been a failure for America’s poorest. We explained the basics in a previous chart, but here’s some other articles worth reading from Forbes, WSJ, and SCMP that help show the effect of these policies.

By the way, the St. Louis Fed has essentially admitted QE was a mistake, while the Philadelphia Fed also admitted that these policies likely helped cause income inequality. Even fragilista economist Joseph Stiglitz has said this summer that ZIRP has helped increase income inequality.

| Digg This Article
 -- Published: Friday, 25 September 2015 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.