These numbers do not come from think tanks and interest groups seeking to influence the tax-cut debate, but from the Federal Reserve Board, which makes the statistics even scarier.
Hardest hit in terms of suffering the biggest percentage losses in wealth and income was the middle class, according to the Fed.
Median net worth plunged 39 percent - “collapsed” is more like it — in those three years from $126,400 in 2007 to $77,300 in 2010.
The main culprit was the free fall in the price of houses, most families’ principal asset. The median value of a family’s stake in their home fell 42 percent to $55,000. It is accepted wisdom among economists that the nation’s economic recovery will continue to be sluggish until the housing market recovers.
There is good news, in a sense, that foreigners are flocking to the U.S. real estate market, buying up $82.5 billion, about 9 percent, of the residential property sold in March, up 24 percent from the year before, according to the National Association of Realtors.
But these tend to be high-end properties bought up by foreigners looking to park their money in a safe haven. These sales do little good to the sprawling middle-class and blue-collar subdivisions hardest hit by foreclosures and short sales. In other bad news for the middle class, median income fell almost 8 percent, from $49,600 to $45,800, and the median value of stock-market-based retirement accounts fell 7 percent to $44,000.
Americans are carrying significantly less credit-card debt, down 16 percent from $3,100 in 2007 to $2,600 in 2010, which is not terribly good news for economically all-important consumer spending, but the median level of family debt remained unchanged, thanks to a fast-rising form of indebtedness — education loans.
This particular Fed survey is conducted every three years. Let’s hope that 2013’s shows a middle class fully restored to prosperity and that the American dream is still a dream and not a roll of the dice.
Follow us on Twitter!
Only a fool would believe that it is ALL GW Bush's fault. Be honest with yourself, rjsnh (or perhaps you just need to wake up?)
Let me guess, how much is GW Bush's fault? In your world probably "NONE". It's amazing how the so called party of individual responsibility can always find a way to shift blame for their foul ups. From two unfunded wars, missing WMD's, massive tax cuts to the rich, unfunded Medicare, the Katrina disaster and an economic melt down you always have someone else to blame.
Now, tell me about that Katrina disaster? Are you talking about the one in which the democrat mayor and governor sat on their hands while the citizens who ignored the many warnings to evacuate suffered thru a lot of flooding and power outages and having to deal with the thuggery of the brothas' from the hood culture? Or is there some other Katrina disaster you are thinking about?
It is, of course all Bush's fault. It is as plain as the nose on your face. Every effort by Obama has proved not only ineffective, but deepens our problems--- BUT--BUSH MaDE HIM DO IT!!!!!
It would be impossible for anyone to act like Mussolini, start class, gender and race wars, unless BUSH MADE HIM DO IT!!!
Obama would never transgress against the Constitution unless BUSH HAD NOT MADE HIM DO IT.
Further, I would not be responsible for this post, except rjsnh & good grief MADE ME DO IT!!!
Nothing is ever a liberal's fault or failure. It is just circumstance that when they try to implement programs and plans that failed in the past, darn it, they fail again. Just bad timing and the conservatives MADE THEM DO IT.
I am signing off now, the editors MADE ME DO IT!!
Boy I wish I was eight years old again and could pass the blame like that--really!