Chart of the Day: The Horrible Toll of the Recession on the Poor


When we talk about rising income inequality, we usually talk about the skyrocketing pay of the top 1 percent. And that’s quite proper, since that’s the main driver of increasing inequality.

But new census data shows that when it comes to net worth—which is basically total wealth—the biggest change has been at the bottom. Even after taking some lumps immediately after the recession, the well-off had recovered and even made some gains by 2011. But the poor have been devastated. Their median net worth has always been pretty close to zero, but by 2011 it had plummeted to $-6,029. On average, poor families were in the hole to the tune of $6,000, an astronomical and completely debilitating number to someone with barely poverty-level earnings.

In other words, when it comes to wealth, the rich really are getting richer, and the poor really are getting poorer. A lot poorer.

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We've never been very good at being conservative.

And usually, that serves us well in doing the ambitious, hard-hitting journalism that you turn to Mother Jones for. But it also means we can't afford to come up short when it comes to scratching together the funds it takes to keep our team firing on all cylinders, and the truth is, we finished our budgeting cycle on June 30 about $100,000 short of our online goal.

This is no time to come up short. It's time to fight like hell, as our namesake would tell us to do, for a democracy where minority rule cannot impose an extreme agenda, where facts matter, and where accountability has a chance at the polls and in the press. If you value our reporting and you can right now, please help us dig out of the $100,000 hole we're starting our new budgeting cycle in with an always-needed and always-appreciated donation today.

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