The inflation-adjusted net worth for the typical household was $87,992 in 2003. Ten years later, it was only $56,335, or a 36 percent decline, according to a study financed by the Russell Sage Foundation. Those are the figures for a household at the median point in the wealth distribution — the level at which there are an equal number of households whose worth is higher and lower.
- Government is taking a much bigger share of the economy.
- Government understates inflation which results in an overstatement of real GDP.
- Taxes are higher, especially on capital gains which are unadjusted for inflation and taxed as if they were true gains.
- Government interventions have destroyed the economy’s ability to grow.
- Government transfer payments have reduced the workforce, spreading a reduced output over more people.
- Government’s encouragement of the use of debt has created behavior not in the best interests of unsophisticated citizens.