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?
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