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Old 10-10-2006, 09:10 PM   #42 (permalink)
450SEL6.9
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Re: "rich are getting richer, poor are getting poorer"???

Quote:
Originally Posted by BMWFREAK
Do you understand now? I apologize for the misunderstanding.
Yup! After reading your initial statement, I just wasn't sure which point you believed in. It's all clear now.

According to the same study, China has a very tiny percentage of millionaires, but they average wealth is $39m v. $43m for Hong Kong millionaires. China has also not been a member of the global economy for that long so it'll take time for them to really expand their wealth classes. I consider most Chinese a rural/farming class rather than middle class.

I don't really know what to make of the middle class in America because I think there is a housing bubble. People are living vicariously off that bubble. If everyone in the "middle class" bought a house for $400,000 and it's worth $600,000 today, they ought to be getting richer. Correct?

But what if they took that $200,000 profit/equity out of their house and financed their otherwise unaffordable consumption? Say, they all buy a fancy car that depreciates like hell. Are they really better off? I really don't know the answer. I think this is happening in the middle class and even amongst the poor (though not the dirt poor class).
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