Drop in Real Household Income

Here’s an amazing stat: the median household income (in real terms) has dropped more since the recession ended than it did during the recession.

Real median household income fell 3.2% (from $55,309 to $53,518) from December 2007 through June 2009. During the “recovery” (June 2009 – June 2011), real household income fell an additional 6.7%!

If you want to see the research, here’s the link (from Sentier Research). They’ve started a new index and you can see the drop in household income below. See chart:

Ask yourself this…how fast can GDP grow when when household income is shrinking and people are deleveraging?

____________________

Have a great week.

If you enjoy this blog, please forward it to others who may be interested.

If you want to receive these emails, here’s how:

1. click on this link  (or type leedsonfinance.com into your browser)
2. toward the top right corner is a place to click on for email service — click and enter your email address
3. you will receive an email which will require you to click on a link to confirm that you want to be on the list

IMPORTANT: if you don’t receive the email in step 3 or you don’t click on the link, you won’t be on the list.  Sometimes, people who use corporate emails get blocked (it’s probably 50% of the time).  So if you don’t get the email, you know you need to use a personal email.