Last month’s job report showed a troubling sign for the economy. Unemployment rose after months of stagnant “improvement” that accompanied record high numbers of Americans no longer counted in the unemployment statistic as the record number of Americans excluded from the labor force has continued to rise. Over the past 3 years unemployment has risen in America and now there are more worrisome economic signs that impact the lives of the everyday population.
Impact of the Recession on America
The American family’s net worth has decreased to the lowest level in two decades. One of the driving forces in this drastic decrease in net worth for Americans is the severe cut in value of their homes, which have fallen by near 40% on average.
This survey information comes from the Federal Reserve’s survey which has shows that since President Obama took office 3 years ago the American family’s median wealth has tanked from $126,400 in 2007 down to $77,300 in 2010. The last time median wealth was this low was in 1992.
Also in this time frame there has been near zero change in the median value of American debt per household. In short, debt has remained unchanged while net worth has decreased unemployment has risen and home values have decreased.
The Federal Reserve conducts this survey every three years and is considered one of the most in depth reports of the American family’s economic situation. Amongst reports of “economic improvement” this report does not look so well and on top of the dismal job reports the situation is likely far from being over.
The Great Recession, as many have coined the government caused economic downturn that began in 2007/2008 has seen slow recovery as government intervention has failed thus far. Despite “injecting” billions into the economy, artificially creating demand and buying up goods and services that cannot be paid for – thus creating debt, and keeping interest rates at unnaturally low levels – the economy is still in a dismal condition.