U.S. Incomes Fell More in Recovery than During Great Recession

[InTheLight]

American incomes declined more in the three-year expansion that started in June 2009 than during the longest recession since the Great Depression, according an analysis of U.S. Census Bureau data by Sentier Research LLC.

Median household income fell 4.8 percent on an inflation- adjusted basis since the recession ended in June 2009, more than the 2.6 percent drop during the 18-month contraction, the research firm’s Gordon Green and John Coder wrote in a report today.

“Almost every group is worse off than it was three years ago, and some groups had very large declines in income,” Green, who previously directed work on the Census Bureau’s income and poverty statistics program, said in a phone interview today. “We’re in an unprecedented period of economic stagnation.”

Also the average duration of unemployment reached a record 41 weeks last November and remains at 39 weeks.

http://www.bloomberg.com/news/2012-08-23/u-s-incomes-feel-more-in-recovery-sentier-says.html

 

[poncho]

You were expecting better news maybe?

Hey, borrow and spend doesn't work while you're shipping jobs overseas and lowering workers wages here, to "compete" in the global market. The whole point of globalization is harmonization.

The global elite can't bring the living standards of third world countries up to first world standards so they'll bring third world standards to everyone, except themselves of course.

Welcome to the global economy. Hope you have a soft landing.

 

[saturneptune]

It is ironic that home mortgage rates are at historic lows and houses are not selling.

 

[targus]

It is ironic that home mortgage rates are at historic lows and houses are not selling.

Lowering interest rates during an economic slow down is a good way of stimulating the economy.

Unfortunately the Obama policies in the areas of jobs, energy, business regulations, etc. are too much for lower interest rates to overcome.

Who wants to borrow money at even near 0% interest if there is no income to pay it back?

 

[LadyEagle]

And our homes have lost value, some people being under water.

Banks are not lending because of Dodd-Frank.

Small businesses are having trouble meeting payroll because of this - many small businesses borrow short-term to meet payroll until their own receivables come in. Some businesses who do not need to do this are not expanding and are holding onto their cash waiting until they see the results of the election and whether or not obamacare will be repealed.

People whose unemployment benefits have run out are seeking and getting onto Social Security Disability.

If obama is re-elected, expect things to get much, much worse than they are now.

 

[InTheLight]

It is ironic that home mortgage rates are at historic lows and houses are not selling.

I can accept houses not selling but I'm surprised that refinancing isn't going through the roof. Unless most people have already refinanced. We did it in May 2011 at 4.25%, which was the lowest (at the time) in 40 years. Now it's at 3.25% or so.

Kind of tempted to refi take some extra cash out and then invest that 3.25% money in a high quality bond fund. One could easily make 6.5% to 7% on money you acquired for 3.25%

 

[billwald]

>Lowering interest rates during an economic slow down is a good way of stimulating the economy.

Then the banks should use their zero cost loans from the government to lower credit card interest.

 

[targus]

>Lowering interest rates during an economic slow down is a good way of stimulating the economy.

Then the banks should use their zero cost loans from the government to lower credit card interest.

Just pay your credit card in full each month and you won't pay any interest at all.

If you can't pay off your credit card in full each month don't use it.

The banks should give back the zero cost loans to the government because we the financially responsible taxpayers can't and don't want to pay the interest for a spendaholic government.