Obamanomics: The Rich Get Richer. The Poor Get Poorer
Obama blames others.
The wealth gap is even more pronounced among Americans who do not own real estate. According to a new study from Harvard University’s Joint Center for Housing Studies, about 50 percent of renters are paying more than 30 percent of their income on rent. That’s particularly alarming because 35 percent of U.S. households, about 43 million, now rent rather than own — up from 31 percent in 2004.
As housing costs rise, the effects may be showing up in personal savings rates. According to the Bureau of Economic Analysis’ Personal Income and Outlays report, personal saving has not budged above 5 percent since early 2011 (even though this report also received a “comprehensive revision” in May that added a whopping $159 billion in ostensible monthly savings).
Notably, Obama’s inequality speech made no mention of rent at all, and the term “real estate” did not appear once, although there was a vague reference to households that “rack up mortgage debt.” While it is not clear how well the president understands these nuts-and-bolts personal finance challenges, it is clear that his rhetoric about America’s glaring wealth disparity overlooks one key point: Inequality is growing markedly worse, not better, under his management of the economy.