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Americans’ Incomes Have Dropped 6.7 Percent During the ‘Recovery’
Weekly Standard ^ | November 1, 2011 | JEFFREY H. ANDERSON

Posted on 01/02/2012 9:21:59 AM PST by upchuck

New evidence suggests there’s a reason why this economic “recovery” hasn’t felt much like a recovery. Figures from the Census Bureau’s Current Population Survey, compiled by Sentier Research, show that the “recovery” has actually been harder on most Americans than the recession from which they’ve allegedly been recovering. 

According to Sentier’s report, the median American household income has actually fallen during the “recovery.”  Not only that, but it has fallen even more than it did during the recession. Gordon Green, former chief of the Governments Division at the U.S. Census Bureau and co-author of the report (with fellow Census veteran John Coder), says, “Real income fell by 3.2 percent during [the recession].  And during the recovery it went down by 6.7 percent.” So “income [has] declined twice as much in the recovery as in the recession itself.”

According to the report — which has been referenced by both the Wall Street Journal and the New York Times — in early 2000, Americans’ median annual household income was $55,836, in real (inflation-adjusted, June 2011) dollars. By the start of the recession (in December 2007), Americans’ real incomes had fallen 0.9 percent, to $55,309 — a decline of $527. During the recession (which ended in June 2009), their incomes fell an additional 3.2 percent, to $53,518 — a decline of another $1,791. During the first two years of the “recovery” (from June 2009 to June 2011), they fell an additional 6.7 percent, to $49,909 — a decline of another $3,609.

So, from the start of 2000 to mid-2011, the typical American household’s real income dropped nearly $6,000 — and more than 60 percent of that drop (over $3,600) came after the start of the “recovery” and thus squarely on Obama’s watch. 

While the real median income of American households dropped 6.7 percent during the first two years of the “recovery,” the incomes of many households dropped even more than that. The income drop was steeper for those under 25 years of age (their incomes were down 9.5 percent), for those between 25 and 34 years of age (down 9.8 percent), for black Americans (down 9.4 percent), for families with three or more children (down 9.5 percent), and for families headed by part-time workers (down 11.5 percent). And that’s despite the fact that the report’s income tallies include unemployment compensation and monetary public assistance (both state and federal).

In fact, the anemic economy has meant that Americans’ incomes have declined during the “recovery” even without adjusting for inflation. According to Green, in actual (non-inflation-adjusted) dollars, the median American household income was $51,140 at the start of the “recovery,” but it fell to $49,909 two years later. 

Suffice it to say, such declining incomes are giving new meaning to the word “recovery.”


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: income; jobs; new; normal; obamanomics; recession; recovery
Yes, this article is two months old. But it is still sobering.
1 posted on 01/02/2012 9:22:02 AM PST by upchuck
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To: upchuck

Hope-and-change alert.


2 posted on 01/02/2012 9:28:07 AM PST by the invisib1e hand (Ignorance is no excuse.)
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To: upchuck

Pffft, it’s all part of that hopey and changey plan.... /s =.=


3 posted on 01/02/2012 9:32:05 AM PST by cranked
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To: upchuck

Tell me about it. Add that the OUTLAY has increased exponentially and whoever isn’t broke yet soon will be. If you have anything like a ‘normal’ income, you are screwed...and they aren’t finished trying to break our backs. Anyone trying to survive on a 401k or any other retirement account will be literally left destitute.


4 posted on 01/02/2012 9:32:05 AM PST by MestaMachine (obama kills)
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To: upchuck
Americans’ Incomes Have Dropped 6.7 Percent During the ‘Recovery’

Nothing that a few new tax increases and loss of deductions can't fix.

5 posted on 01/02/2012 9:34:18 AM PST by EGPWS (Trust in God, question everyone else)
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To: upchuck
This is the logical outcome of a Keynesian consumer-spending-driven recovery. Consumer spending has recovered to levels above those prior to the recession, but -- as the classical economists understood well -- demand for consumer goods is not demand for labor.

Labor is hired by capital.

The Keynesians never quite got that bit. They think capital spending is an automatic by-product of increased spending. It isn't. Increased government spending, debt and inflation are consuming our capital base (not to mention EPA regs forcing the shutdown of coal plants).

It is capital that improves wages and living standards. We're eating ours. It's only natural that they're dropping.

6 posted on 01/02/2012 9:38:22 AM PST by BfloGuy (The final outcome of the credit expansion is general impoverishment.)
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To: upchuck

I wish that were all it dropped for me...


7 posted on 01/02/2012 9:41:06 AM PST by zwerni (this isn't gonna be good for business)
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To: zwerni

Down 57% for me. thank GOD I lived well below my means during the good times. I am barely getting by now.


8 posted on 01/02/2012 9:54:40 AM PST by cableguymn
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To: upchuck

Obama
Must
Go


9 posted on 01/02/2012 10:05:25 AM PST by PogySailor (Obama is a SCOAMF)
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To: upchuck

What recovery?

Why does anyone call this a recovery?


10 posted on 01/02/2012 10:13:53 AM PST by CGalen
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To: upchuck

November 1, 2011; the ‘Recovery’?

Nov 30, 2011
http://www.reuters.com/article/2011/11/30/usa-taxes-obama-idUSN1E7AT1RU20111130

Obama “It would also be a massive blow to the economy because we’re not fully out of the recession yet.”


11 posted on 01/02/2012 10:18:41 AM PST by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: upchuck

U.S. recession ended June 2009, NBER finds
http://www.marketwatch.com/story/us-recession-ended-june-2009-nber-says-2010-09-20

The U.S. recession that began in December 2007 ended in June 2009, making the 18-month slump the longest since the Great Depression, according to the National Bureau of Economic Research.

Yet the NBER also cautioned that its findings bear no relation to the current state of the economy and do not represent a forecast about the future. If another downturn occurs anytime soon, the NBER said, it would constitute a separate recession.


12 posted on 01/02/2012 10:19:03 AM PST by Son House (The Economic Boom Heard Around The World => TEA Party 2012)
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To: MestaMachine

Incomes dropped as people took any job to get money coming in or pay cuts or hour cuts. And then health insurance sky rocketed and property and sales taxes rose.


13 posted on 01/02/2012 10:23:53 AM PST by tbw2
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To: upchuck

True for me — no salary increase in over 3 years, but health insurance premiums have been rising every year, so my net has been decreasing.


14 posted on 01/02/2012 10:25:30 AM PST by Constitutionalist Conservative (Never mind.)
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To: upchuck
The whole idea that there is some kind of recovery going on is just plain stupid. Unemployment has not decreased, income is down, inflation is up considerably, and they call this a “recovery”? All they really mean by this is that the stock market is up and members of congress’ individual wealth has increased.
15 posted on 01/02/2012 11:18:56 AM PST by Prokopton
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To: Constitutionalist Conservative
True for me — no salary increase in over 3 years, but health insurance premiums have been rising every year, so my net has been decreasing.

Not just insurance premiums. With the real consumer inflation rate of about 7%, without significant raises everyone is falling behind, and fast. Three years of a steady paycheck would mean 25% less real income. Throw in declining paycheck numbers and, as families, many of us are close to a crisis.

16 posted on 01/02/2012 11:28:01 AM PST by Prokopton
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To: Constitutionalist Conservative

not to worry, Obamacare will fix it. (if you got your Obamawaiver)


17 posted on 01/02/2012 11:45:49 AM PST by WOBBLY BOB (Congress: Looting the future to bribe the present.)
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To: Prokopton

“All they really mean by this is that the stock market is up and members of congress’ individual wealth has increased.”

The voters have learned a lot since 2000; they realize now that companies’ stock prices soar as their American workforces are slashed and replaced with Asian slaves. Nobody believes in this “recovery”, and the elections in 2009 and 2010 indicate that Obama will probably not even carry Illinois. There is simply no way to convince Americans that our economy doesn’t suck even worse than 3 years ago.


18 posted on 01/02/2012 12:11:46 PM PST by kearnyirish2
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To: Son House

Best estimates by people who should know are that the next bull market will not take place before the mid to late 2020s.


19 posted on 01/02/2012 12:19:32 PM PST by kjo
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To: Prokopton

Inflation’s also affecting business as well.

A company’s profits growing at an annual 4% increase in an economy sufferring 7% inflation... is really shrinking, instead.


20 posted on 01/02/2012 1:14:06 PM PST by gogogodzilla (Live free or die!)
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To: Prokopton

Bump!

Prices ARE up. Been to the grocery store lately? :)

This business about low inflation is BS. We see what’s going on in the market place. The BLS can cook the numbers all they want. Doesn’t change reality.


21 posted on 01/02/2012 5:00:26 PM PST by upchuck (Let's have the Revolution NOW before we get dumbed down to the point that we can't.)
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