Household Wealth Hasn't Recovered From Recession
Fed says average household has gotten back only 45% of money lost
By Newser Editors and Wire Services
Posted May 30, 2013 5:23 PM CDT
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(Newser) – The average US household has a long way to go to recover the wealth it lost to the Great Recession, a report by the Federal Reserve Bank of St. Louis concluded today. The typical household has regained less than half its wealth, the analysis found. Household wealth plunged $16 trillion from the third quarter of 2007 through the first quarter of 2009. By the final three months of 2012, American households as a group had regained $14.7 billion. Yet once those figures are adjusted for inflation and averaged across the US population, the picture doesn't look so bright: The average household has recovered only 45% of its wealth, the St. Louis Fed concluded.

That suggests that consumer spending could remain modest as many Americans try to rebuild their wealth by saving more and paying off debts. Nearly two-thirds of the increase in household wealth since 2009 is due to rising stock prices, the authors note. Those gains disproportionately benefit affluent households. For middle- and lower-income households, home values represent the biggest chunk of total wealth. And home prices remain about 30% below their peak, even after jumping nearly 11% in the past year.

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Showing 3 of 26 comments
AnimeOtaku
Jun 2, 2013 1:51 PM CDT
You guys are just wasting your time blaming either the righties or lefties, BOTH PARTIES are culpable!!! Besides, look how HARD people had to work just to get back 45% and that was/is with our occupational pedal all the way to the floor!!!! Another thing people aren't considering is the wild card of Climate Change. Add that in and then you can see we all are in some real deep doo-doo!!!!
Tat2d2bamuse
May 30, 2013 11:55 PM CDT
Because for many, they are still struggling to find decent employment. Those who have jobs are living pay check to pay check. Families are being torn apart. Kids are raising themselves and well the strong core family is no longer there. When you have mom and dad competing with their teenagers for that fast food job, you could imagine the tension building up in the average home. Thankful I have a job I love and can see myself doing for the rest of my life.
MisterPlinkett
May 30, 2013 10:33 PM CDT
That's because WE'RE IN A DEPRESSION!!! The democrats are lying to you idiot liberals. Snap out of it!