The tale of the table

The full Excel file with all the data can be downloaded from the website of Professor Emmanuel Saez at the Univ. of Berkeley. So, when you read how the networth of US Households has improved in the second quarter (Flow of Funds Accounts released by the Federal Reserve recently), read and interpret it in the light of the work by Emmanuel Saez.

The bottom 99% have been QEed.


2 thoughts on “The tale of the table

  1. Although the argument is strong, there’s a case for some scepticism before one concludes that this time around is different, the rich have benefited disproportionately more than the poor, and that it is down to QE. The previous 4 phases (1993-2000, 2000-2002, 2002-2007, and 2007-2009) are complete phases, while we’re still in the middle of the 5th (2009-ongoing) phase. Perhaps it is so that in all phases initially the numbers look like the present phase, but by the time the phases end they look more like the 4 past phases.


    1. Good point. But, four+ years after the recession ended, things have not played out this way before. Second, this is a continuation of a secular trend that began in the 1980s, gained momentum in the 1990s and has hit a new level in the new millennium. Job creation in the Bush expansion years (2002-08) was the weakest in the post-War economic expansions in the US. This is not a cyclcical phenomenon for us to wait and see how it plays out by the time the cycle ends.


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