Family Net Worth Drops to Level of Early ’90s, Fed Says
By BINYAMIN APPELBAUM
Published: June 11, 2012
WASHINGTON — The recent economic crisis left the median American family in 2010 with no more wealth than in the early 1990s, erasing almost two decades of accumulated prosperity, the Federal Reserve said Monday.
A hypothetical family richer than half the nation’s families and poorer than the other half had a net worth of $77,300 in 2010, compared with $126,400 in 2007, the Fed said. The crash of housing prices directly accounted for three-quarters of the loss.
Families’ income also continued to decline, a trend that predated the crisis but accelerated over the same period. Median family income fell to $45,800 in 2010 from $49,600 in 2007. All figures were adjusted for inflation.
The new data comes from the Fed’s much-anticipated release on Monday of its Survey of Consumer Finances, a report issued every three years that is one of the broadest and deepest sources of information about the financial health of American families.
With twenty years on each side and since some of the ups and downs of the U.S. business cycle lie beyond the direct control of policymakers, one would expect similar results in the two groups. Not so. Instead, one discovers below a significant advantage when a Democrat occupied the White House in each of the five categories.
% Per Annum Democrat Republican.. Bush43
GDP Growth..... 4.1%..... 2.9%.... 2.2%
Employment.... 2.9%.... 1.7%..... 0.5%
CPI.................. 4.0%.... 5.1%..... 3.0%
DJIA................ 8.1%..... 6.5%..... 0.9%
Dollar............... +0.8%... -3.6%.... -5.9%
Something that I'm not able to wrap my thinking around is why American voters want the wealthy and corporations not to pay more taxes. All while the average household income and net equity shrinks.
We have shrinking funds for our infrastructure, schools, and social support systems, and most voters want more of the same.
You're asking a question that's a mystery to most liberals and Independents like me. Do you have the answer?
You're wrong; they are not voting the status quo. They are voting to a) cut government spending, b) cut government unions, c) strangle our police, fire, and schools from funding, d) cut government jobs, e) discriminate against gays and women, f) cut taxes for the wealthy and corporations, and g) cut their own throats. It might make sense to conservatives, but I'm totally mystified.
The latest report from the Federal Reserve tells us that wealth of the middle class declined by more than a third between 2007 and 2010. The wealth of the top 10%, however, grew by two percent.
It only means you know nothing about the political history of this country.
As patriotic Americans, the Japanese-American community should only be upset about the loss of any material possessions, but glad to be protected from the pathogen of any Japanese saboteurs.