Progressives like to tell us that there is a static amount of money in the economy – like a big pie that never changes its size. They want us to believe that the reason there are poor people is that rich people keep too much of the pie, leaving little for anyone else. If that’s the case, why did US household net worth decline? Even if all the wealth was re-distributed, wouldn’t it average out the same? Or could it be that the policies of the progressives controlling our government have destroyed capital and shrunk the pie?
Reuters: Household net worth fell to $53.5 trillion, well below the $64.2 trillion it had reached at the end of 2007 when the recession officially began, according to the central bank’s quarterly flow of funds report.
Declines in the value of financial assets — especially in stocks and mutual funds — accounted for much of the decline in second-quarter net worth. Stocks alone were down $1.9 trillion to $14.9 trillion, more than offsetting small gains in other areas like state and local government retirement funds.
Moral of the story – class warfare and spread the wealth around policies don’t make poor people richer, all they do is make everyone else poorer.
In related news, consumer confidence is down, which means less economic activity, and fewer jobs for Americans.