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EDITOR’S COMMENT: Truth meets fiction. Fiction wins. Most people refer to this period in our history as a recovery period. It is not. We are (a) in continual decline and (b) headed for another, larger crisis. The government’s attention to creating jobs has been anemic at best, stunted by absurd ideology that has effectively blocked the right steps toward a true recovery. A true recovery would be one in which the unemployment rate including all those who have given up, falls to around 3-4%. That requires a 90% reduction in unemployment. No policy on the table comes anywhere near reaching for that goal.
Employment and housing are inextricably linked for obvious and not so obvious reasons. The obvious reason is that if people have no income they have no ability to pay for housing. The false foreclosures have driven the housing market down siphoning off over $7 trillion from homeowners that landed right in the pocket of Wall Street bankers. These homeowners and former homeowners have no credit, no savings and no income from an economy that can’t keep pace with the elements of a recovery.
Stop the foreclosures, reverse those that have occurred, work out deals for them to pay the Federal government a portion of the mortgage on the house or rent the house, and you’ll be injecting trillions back into the wallets from which the money was stolen. With consumer wealth and resources restored, the consumer driven economy will rise, unemployment will fall, and THEN we will be having a true recovery instead of the imaginary one that is splashed across mainstream media.
Americans’ Incomes Have Dropped 6.7 Percent During the ‘Recovery’
New evidence suggests there’s a reason why this economic “recovery” hasn’t felt much like a recovery. Figures from the Census Bureau’s Current Population Survey, compiled by Sentier Research, show that the “recovery” has actually been harder on most Americans than the recession from which they’ve allegedly been recovering.
According to Sentier’s report, the median American household income has actually fallen during the “recovery.” Not only that, but it has fallen even morethan it did during the recession. Gordon Green, former chief of the Governments Division at the U.S. Census Bureau and co-author of the report (with fellow Census veteran John Coder), says, “Real income fell by 3.2 percent during [the recession]. And during the recovery it went down by 6.7 percent.” So “income [has] declined twice as much in the recovery as in the recession itself.”
So, from the start of 2000 to mid-2011, the typical American household’s real income dropped nearly $6,000 — and more than 60 percent of that drop (over $3,600) came after the start of the “recovery” and thus squarely on Obama’s watch.
While the real median income of American households dropped 6.7 percent during the first two years of the “recovery,” the incomes of many households dropped even more than that. The income drop was steeper for those under 25 years of age (their incomes were down 9.5 percent), for those between 25 and 34 years of age (down 9.8 percent), for black Americans (down 9.4 percent), for families with three or more children (down 9.5 percent), and for families headed by part-time workers (down 11.5 percent). And that’s despite the fact that the report’s income tallies include unemployment compensation and monetary public assistance (both state and federal).
In fact, the anemic economy has meant that Americans’ incomes have declined during the “recovery” even without adjusting for inflation. According to Green, in actual (non-inflation-adjusted) dollars, the median American household income was $51,140 at the start of the “recovery,” but it fell to $49,909 two years later.
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