The latest figures released by the Federal Reserve demonstrate again that a major problem facing the US economy center around distributive justice , fairness and equity.
Average family income in the US; $70,700; has declined by 2.3percent between 2001 and 2004. The only solace in this figure is the fact that it is not as bad as what had occured during 1989-1992; a drop of 11.3%. ( For those that are too young to remember that was the era of Bush Sr!!!! Like father like son).
In all fairness though it must be noted that median family income; 43,200 saw a slight increase of 1.6% during the 2001-2004 time period. Interestingly median family networth witnessed also a small increase of 1.5% in the same period ; $93,100.
But what is most important and discouraging is the data about wealth gap. Those who are lucky enough to belong to the top 10% of households saw an increase in their net worth to an average of $3,110,000.00 when the bottom 25% experienced a decline in their networth to the level whereby they are in debt , on the average, to the tune of $1400.00.
"Clearly , the gains in wealth are going to the top end" said David Wise, the chief economist at Standard and Poor's.
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