Papa D Loc: Mantweeka, Ca

It seems like in almost every political discussion post, I'll get asked the same question...



While my answer has remained a steadfast 'ABSOLUTELY', I've refrained from responding until I had credible evidence to back it up.

Here it is...(feel free to fast forward to the charts and tables if the text is too challenging)

Source: Federal Reserve Board, Survey of Consumer Finances.

*****Income******
• Between the 2019 and 2022 surveys, real median family income (which is measured for the year before the survey) rose a relatively modest 3 percent, while real mean family income grew 15 percent. Increases in income were experienced across the income distribution but were largest at the top, consistent with some increase in income ine******y over this period. Indeed, the between-survey growth in mean income was one of the largest three-year changes over the history of the modern SCF.

• A relatively large share of families, 28 percent, reported that their income during the 2021 calendar year differed from its usual amount—that is, their “usual income”—reflecting elevated shares of both families with higher-than-usual income and families with lower-than-usual income.

• Increases in median and mean income were relatively widespread across different types of families, whether grouped by economic characteristics (for example, level of usual income, level of wealth, urbanicity, or home-owner status) or demographic characteristics (for example, age or race and ethnicity), and any declines were modest. The exception is across educational groups, where increases in both median and mean income were nearly fully concentrated among families in which the reference person had a college degree.

[See Figure 1, below]

******Net Worth*****

• Between 2019 and 2022, real median net worth surged 37 percent, and real mean net worth
increased 23 percent. These patterns imply some narrowing of the wealth distribution between
surveys. Indeed, the 2019–22 growth in median net worth was the largest three-year increase
over the history of the modern SCF, more than double the next-largest one on record.

• Increases in both median and mean net worth were near universal across different types of families, grouped by either economic or demographic characteristics.

[See Figure 2, below]

*****Assets******

• The homeownership rate increased slightly between 2019 and 2022, to 66.1 percent. For families that owned a home, the median net housing value (the value of a home minus home-secured debt) rose from $139,100 in 2019 to $201,000 in 2022, as home values increased
and housing debt was rather flat. Net housing values grew substantially for families across the usual income distribution, reaching their highest levels on record. Correspondingly, housing affordability fell to historic lows, as the median home was worth more than 4.6 times the median family income.

• Just over two-thirds of working-age families participated in retirement plans in 2022, up slightly from 2019. While participation remained uneven across the income distribution, all major income groups saw increases in participation between 2019 and 2022. Conditional mean balances in account-type retirement plans rose for families in the upper half of the usual income distribution but fell for those in the bottom half.

• Participation in the stock market increased across the usual income distribution between 2019 and 2022, with families between the 50th and 90th percentiles experiencing a substantial increase. Amid a sizable rise in major stock indexes over this period, all major income groups
experienced robust growth in the conditional median and mean values of their holdings.

• In 2022, 20 percent of all families, 14 percent of families in the bottom half of the usual income distribution, and nearly half of families in the top decile of the usual income distribution owned a privately held business. Families that owned businesses had higher income and wealth than those that did not. Further, a family’s income and wealth increased with the number of employees in their business.

[See Table 3, below]

*****Debt******

• Debt secured by residential property was about unchanged between 2019 and 2022. About 42 percent of families in both 2019 and 2022 had debt secured by their primary residence, and the median amount of this debt decreased by less than 1 percent to $155,600 in 2022.

• Between 2019 and 2022, the share of families with credit card debt was fairly stable (around 45 percent). However, median and mean balances for families with credit card debt declined noticeably to $2,700 and $6,100, respectively.

• The share of families that had student debt in 2022 was 22 percent, unchanged from 2019. Among families with student debt, median and mean balances were essentially stable, hovering around $25,000 and $47,000, respectively. Similar to 2019, the distribution of student debt became increasingly skewed toward higher earners.

[See Table 4, below]

*****Financial Vulnerability*****

• All SCF measures of financial fragility declined between 2019 and 2022. For debtors, the median leverage ratio—that is, a family’s total debt relative to its total assets—declined to a 20-year low of 29.2 percent, and the median payment-to-income ratio dropped to the lowest level ever recorded in the SCF (13.4 percent). The fraction of families with payment-to-income ratios greater than 40 percent declined 0.9 percentage point to 6.5 percent, also the lowest value on record.

• Families’ ability to stay current on their financial obligations was steady between 2019 and 2022 and remained well below levels in the SCF surveys that followed the financial crisis. Between 2019 and 2022, the share of families that declared bankruptcy in the past five years declined to 1.3 percent.

[See Table 5, below]

sawheeler52 Loc: Escondido, CA

PapaD,

Thanks for doing the legwork. Very well put together.
As a metrics guy, it read to me perfectly.
A few comments:
1. I am convinced your "absolutely" reply when asked the question proves correct.
2. I'm figuring there is enough here that not much of value will or can be added in dispute.
3. I am of the opinion both t***h and facts died at least 2-decades ago. Not enough people care anymore. So many are committed to THEIR facts; however unmeasured. They just "know" it's true.
4. To the anonymous commenter who asked something like 'are you better off now than 2-years ago,' I will offer my services on how to read a graph.

You have provided what I see as a service.

Flytier Loc: Wilmington Delaware

None of this means a thing if you don't throw in the increases in costs of everything that went up as a result of the government manipulating the minimum wage by giving "free" money and forcing employers to pay higher wages to get people to come to work.

Papa D Loc: Mantweeka, Ca

Obviously, you missed this...

Rheatown Loc: Greeneville tn

This is as comical as cnn coming from a state that’s running so far in the negative zone youns must be doing better than the rest of the country or plum brainwashed one

sawheeler52 Loc: Escondido, CA

Papa D,
Love your font size.
However, I expect it does not impact mindsets.
If I was going to add to the inflation discussion, I would recognize it as a global event; not at all unique to the US as some may view.
Since you somehow found time to make an impressive & effective (at least to me) presentation.....I was just wondering if you could put something (graphs) together demonstrating pre and post p******c inflation rates among the major countries.
However presumptuously ignorant, I expect it will support your "absolutely" (better) position.

sawheeler52 Loc: Escondido, CA

Papa D,
Love your font size.
However, I expect it does not impact mindsets.
If I was going to add to the inflation discussion, I would recognize it as a global event; not at all unique to the US as some may view.
Since you somehow found time to make an impressive & effective (at least to me) presentation.....I was just wondering if you could put something (graphs) together demonstrating pre and post p******c inflation rates among the major countries.
However presumptuously ignorant, I expect it will support your "absolutely" (better) position.

Papa D Loc: Mantweeka, Ca

Not ignorant

sawheeler52 Loc: Escondido, CA

Papa D,
Boy that was quick.
Thanks.
More metric facts if you're a believer in such.
I can only agree with any observation that living costs more than it used to. (Shoot, I live in CA.)
What is often missed by some, for which you again demonstrate well is:
1. The inflation (CPI being an index indicative of what a market basket of consumer goods & services costs) we all experience is not from any US government policy or law. It has been and still is worldwide due to a myriad of market events.
2. What is important is how the US reacted to it in about 2021.
3. Your latest graph demonstrates that:
a. the CPI % change started going up worldwide around 2020-2021.
b. 2-entities (UK & Eurozone) topped at around 11% near the end of 2021.
c. the US had the third highest @ about 9%. (2021 also)
d. today (or at least the end of 2022 being the latest year figures are available), no country/entity listed has a CPI % change lower than the US, now around 3% with the UK still near 7%.

"Absolutely."
The current administration's policies appear effective to this bass h****r.

plumbob Loc: New Windsor Maryland

Impressive post Papa if one wants to believe on a report from " Source: Federal Reserve Board, Survey of Consumer Finances. "

No one that I know of and myself got a call to fill in the blanks on a survey. Where are the real #'s from the American people spending 50% more on food than 3 years ago?

How many loss their job because the employer could not pay all the employees the climbing minimum wage?
Have you bought a simple 2 x 4 at Home Depot lately?
Home interest approaching Clinton era rates?
1 decent SS increase and the rest barely met inflation levels.

Other than the supposedly financial pluses you are showing, what has Biden done good for the country?

Rheatown Loc: Greeneville tn

O he’s done a lot of good look at his staff goes to show you can make it no matter what kind of mental problem you have freaks you believe in he’s trying to make it easier to k**l babies trying to double our population and letting them live off our paychecks don’t you like to share lol look how well he’s done off a senator salary and all the days off he gets if that’s not progress I don’t know what is

sawheeler52 Loc: Escondido, CA

plumbob,

Re: "Home interest approaching Clinton era rates?
True.
I would offer as high as they are currently, they are pretty close to average over the last 50-years.
Two spikes I can see:
Jumped a bunch during the Carter administration, largely in my view caused by the 1973 OPEC oil embargo eliminating oil exports to the US.
And again around 2021, associated to me with the wide-ranging impact of a global v***l p******c.
Rates were near (at least) 12% throughout Ronald Reagan's tenure.
Rates were above 10% throughout the George HW Bush administration.
Rates were 4-5% when Obama was in the White House.
I think it is important that we look at instantaneous/current conditions in some perspective.
Just my way of looking at things.
Tight lines.

plumbob Loc: New Windsor Maryland

Saw52,

I guess we look at the current perspective in a different way. My way of thinking is rates were as low as 2% when it was approaching post c***d times. The country starts to heal and the rates start to climb. The history of the past 50 years the rates were up and down as we well know no matter what administration was at the helm.

Living in the Now, with a democratic administration I find it hard to justify raising rates when the country needs to get back on its feet. If it were a republican administration and doing the same thing I would be saying the same.

The government does not give me a warm fuzzy feeling when it has loss the "For the people by the people" way of running the country.

sawheeler52 Loc: Escondido, CA

plumbob,
Thanks for your earlier reply re: historical mortgage interest rates. I respect your view.
I understand different folks may see administrations' accomplishments as something else.
You did ask "...what has Biden done good for the country?"
From my angle here's a few. You gotta agree with a couple. Right?


1. Passed the $1.2 trillion bipartisan infrastructure package to increase investment in the national network of bridges and roads, airports, public t***sport and national broadband internet, as well as waterways and energy systems.

2. Helped get more than 500 million life-saving C****-** v******tions in the arms of Americans through the American Rescue Plan.

3. Stopped a 30-year streak of federal inaction on gun violence by signing the Bipartisan Safer Communities Act that created enhanced background checks, closed the “boyfriend” loophole and provided funds for youth mental health.

4. Made a $369 billion investment in c*****e c****e, the largest in American history, through the Inflation Reduction Act of 2022.

5. However poorly executed, ended the longest war in American history by pulling the troops out of Afghanistan (as scheduled by his predecessor).

6. Provided $10,000 to $20,000 in college debt relief to Americans with loans who make under $125,000 a year.

7. Cut child poverty in half through the American Rescue Plan.

8. Capped prescription drug prices at $2,000 per year for seniors on Medicare through the Inflation Reduction Act.

9. Passed the C****-** relief deal that provided payments of up to $1,400 to many struggling U.S. citizens while supporting renters and increasing unemployment benefits.

10. Achieved historically low unemployment rates after the p******c caused them to skyrocket (less than 4%).

11. Imposed a 15% minimum corporate tax on some of the largest corporations in the country, ensuring that they pay their fair share, as part of the historic Inflation Reduction Act.

12. Recommitted America to the global fight against c*****e c****e by rejoining the Paris Agreement.

13. Strengthened the NATO alliance in support of Ukraine after the Russian invasion by endorsing the inclusion of world military powers Sweden and Finland.

14. Authorized the assassination of the Al Qaeda terrorist Ayman al-Zawahiri, who became head of the organization after the death of Osama bin Laden.

15. Gave Medicare the power to negotiate prescription drug prices through the Inflation Reduction Act while also reducing government health spending.

16. Held Vladimir Putin accountable for his invasion of Ukraine by imposing stiff economic sanctions.

17. Boosted the budget of the Internal Revenue Service by nearly $80 billion to reduce tax evasion and increase revenue.

18. Created more jobs in one year (6.6 million) than any other president in U.S. history; though this data is skewed due to the earlier job losses during the global p******c.

19. Reduced healthcare premiums under the Affordable Care Act by $800 a year as part of the American Rescue Plan.

20. Signed the PACT Act to address service members’ exposure to burn pits and other toxins.

21. Signed the CHIPS and Science Act to strengthen American manufacturing and innovation.

22. Reauthorized the Violence Against Women Act through 2027.

23. Halted all federal executions after the previous administration reinstated them after a 17-year freeze.

Hope to get out fishing today or tomorrow.
Best regards.

plumbob Loc: New Windsor Maryland

S52, Thank You. You are the first to finally answer that question with such detail. Naturally there are some I will question you on we may have a difference of opinion. So you go fishing and I will put some thoughts together and get back to you.