Much has been written about income inequality and how much
better off the top 1% are compared to the bottom 99%. Now we have a first look at generational
income inequality. If you wonder why the
youth of America are so angry, the results of a new study provide part of the
answer.
A Pew Research report being prepared for a special
congressional committee to be released on November 23rd is expected
to show a growing gap between the net worth of Americans 65 or older compared
to Americans 35 and younger. The median
net worth of older Americans has increased 42% since 1984 while the median net
worth of younger Americans has declined by 68%.
As the table below shows, the net worth of all American households
headed by Americans 54 or younger regardless of age bracket has declined by 10%
or more since 1984.
Additionally, older Americans have suffered less from the
recession. While median net worth of all
American households declined 28% between 2005 and 2009, the median net worth of
those 65 and older declined just 6%.
Those 35 and younger saw their net worth decline by more than half. 22% of younger Americans now live in poverty (up
from 12% in 1967) compared to only 11% of those over 65 (down from 33% in 1967).
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