On Thursday (7/18/2012), Dylan Matthews posted an article on Ezra Klein’s blog at the Washington Post. It contained a bar graph of median household wealth (net worth) for 19 nations in declining order. These numbers are my (approximate) reading of that graph:
- Australia $220,000
- Italy $160,000
- Japan $125,000
- United Kingdom $120,000
- Switzerland $100,000
- Ireland $100,000
- France $90,000
- Canada $89,000
- Norway $83,000
- Finland $80,000
- Spain $75,000
- New Zealand $72,500
- Netherlands $70,000
- Israel $65,000
- China, Taiwan $60,000
- Germany $60,000
- United States of America $53,000
- Sweden $40,000
- Denmark $25,000
The range here is huge, almost a factor of ten between Denmark and Australia. The U.S., which has a very large per-capita GDP, ranks 17th out of 19. Israel, to whom we give foreign aid has higher median per-household wealth. What’s going on here??
The data come from this Credit Suisse report (pdf), and I’m presuming that Dylan’s bar graph correctly reflects that data. The big factor here is that these numbers are “medians” (i.e., midpoints) rather than “means” (i.e., averages). A country can have high average wealth, even if 99% of the country have nothing, provided that the 1% are very, very wealthy.
This is a chart that I’m going to show when Mitt Romney fans talk about “what makes American exceptional.” It vividly documents how badly America’s 99% are being screwed by its 1%. We’re a wealthy nation only when you count the trillions controlled by the 1% but not so wealthy when you look at the net worth of the median household.
UPDATE: Per HuffPo, U.S. poverty is set to reach the highest level in 47 years this summer:
The Associated Press surveyed more than a dozen economists, think tanks and academics, both nonpartisan and those with known liberal or conservative leanings, and found a broad consensus: The official poverty rate will rise from 15.1 percent in 2010, climbing as high as 15.7 percent. Several predicted a more modest gain, but even a 0.1 percentage point increase would put poverty at the highest since 1965.
Poverty is spreading at record levels across many groups, from underemployed workers and suburban families to the poorest poor. More discouraged workers are giving up on the job market, leaving them vulnerable as unemployment aid begins to run out. Suburbs are seeing increases in poverty, including in such political battlegrounds as Colorado, Florida and Nevada, where voters are coping with a new norm of living hand to mouth.



18 Comments

One very pertinent explanation regarding how little wealth there is inside the USA – the average person has to wonder if they will win or lose the medical expense LOTTERY portion of their life.
It’s a crap shoot. A household can spend $ 50K over the course of six or seven years on health insurance, but if you get a diagnosis the day you are uninsured – YOU LOSE! Could mean you have to raid your retirement funds to stay alive.
Some 700,000 households in the USA file a medical-related bankruptcy.
Yet people are so enamored of the Two Major Two Party “WE WILL DO ANYTHING FOR THE MAJOR INSURERS” political “leaders.”
The median family in China has more than the median family in the US? Swell. We can now say the richest country in the world is indeed a banana republic.
This is not the new normal!
It will get worse. Much worse.
And all the while the corporate media and bought politicians will ignore it.
Thanks for calling attention to this wigwam. It’s vitally important for understanding how much better off the median adult is in other modern nations. There’s only one word that describes Americans: “Suckers.”
Oh great. This coupled with Dean Baker’s Post on the 1%ers SS and Medicare grab just makes my day. The United States of America – the world’s largest banana republic with the largest prison population (in numbers and per capita). Wonderful. Hey! At least we can have all the guns and ammo we want. Look at that tragedy in Aurora CO. What a great country. Sheesh
Oh BTW, even though Denmark is at the bottom of the list in , they are reported as being the happiest nation in the world by the Organisation for Economic Co-operation and Development (OECD). See:
http://www.oecdbetterlifeindex.org/topics/life-satisfaction/
Recommended!
I wish this could be front paged at FDL. People need to see this.
When will they understand that we are being deliberately driven to the ground in order to be controlled by the 1% in more ways than one can imagine?
Doesn’t Denmark have a very progressive safety net? I was under the impression they did.
I’m simply not buying those data, at least not at face value.
Yes they do. And all education a free from k->college.
Maybe you skimmed over this paragraph or forgot to read it:
The author isn’t asking you to accept it at face value. It comes with a 150 page PDF attachment that discusses the data at length. Feel free to READ IT.
I saw that. Nobody will realistically read a 150 page pdf as a backgrounder to an FDL diary.
I suspect they are talking only about private wealth, whereas actually very wealthy societies like DK can look disproportionately poor by that measure because much of their nation’s considerable health is publicly held.
^^^ “health” was meant to be “wealth”
http://www.salon.com/2012/07/19/how_america_became_a_country_that_lets_little_kids_go_homeless_salpart/
http://www.aljazeera.com/indepth/opinion/2012/07/2012717104035237926.html
http://www.nakedcapitalism.com/2012/07/is-a-great-grey-exodus-from-american-starting.html
“Nobody” I take it means “You(because there is a reason I knew it was a 150 page PDF)”
You are certainly entitled not to read the data background however, that should reflect on YOU and not the individual that wrote the diary and made the data and it’s background readily available for anyone willing to take the time to read it.
Household wealth usually means privately held wealth. I don’t think the point was to bash places like Denmark that have nationalized things, the point was to show how totally screwed those of us at the bottom are. We don’t have a nationalized system for many of our needs. Health care, secondary education all come out of that $53,000 or less that 50% of us have unlike somewhere like Denmark which has college and health care costs paid for by taxes. The social safety nets that keep Denmark as having one of the lowest poverty rates in the world don’t apply here where politicians have no problem cutting food stamps to save the rich from paying more in taxes.
Exactly!
One of the anomalies in this data is that personal retirement plans (e.g., IRAs) usually count toward “net worth,” while general retirement plans (e.g., a public employee’s defined-benefit plan and/or Social Security) don’t. I’m told that Sweden and Denmark have excellent plans that take care of the elderly. Not only don’t those plans count toward their citizens’ “net worth,” but the excellent quality of those plans encourage their citizens not to save. If you had super-excellent government coverage to care for you in your elder years, would you set aside as much as the typical American? My point is that the median American is really at the bottom of this graph.
Also, per the LA Times, the median U.S. family lost 40% of their wealth in the recent meltdown.