Rich Get Richer Cont.
Sen. Bernie Sanders held the Senate floor for 8 ½ straight hours one day this month to make the case that the wealthiest Americans do not need more tax breaks and that the billions in foregone revenue will drive the nation deeper into debt. Congress and President Obama approved the measure nevertheless. Now comes word that the net worth of America's wealthiest households last year was an incredible 225 times greater than the net worth of the median family, according to a new study by the Economic Policy Institute. The report said the ratio between those at the top and everyone else reached a record high in 2009.
Wealth or net worth - the total value of homes, banks accounts, retirement funds and other assets minus what is owed for mortgages, student loans, outstanding credit card bills and other debts - is more unequal than the distribution of wages and income, according to the report, although that gap also is wide.
The institute said income measures an ability to afford essentials like housing, food, and health care, those with greater wealth have greater flexibility to invest in everything from college educations to retirement funds. "Since accumulated assets also provide a cushion against job loss and other financial emergencies, this growing wealth disparity shows why some households are more devastated by unemployment, illness, and other factors that cause a temporary loss of income," the report said.
To read more from the Economic Policy Institute, click here.
