You Know What Isn’t #DoingJustFine? The Average American Family’s Bottom Line.
June 11, 2012 - 1:26 pm
In the Age of Obama, the American family is getting hosed, according to a story in the Washington Post.
The net worth of the American family has fallen to its lowest level in two decades, according to government data released Monday, driven by a more than 40 percent drop in their stakes in their homes.
The Federal Reserve’s detailed survey of consumer finances showed families’ median wealth plunged from $126,400 in 2007 to $77,300 in 2010 — a 39 percent decline. That put them on par with median wealth in 1992.
Lost decade? Try lost decades. Among the US number one songs of 1992: Right Said Fred’s “I’m Too Sexy” and George Michael’s duet with Elton John, “Don’t Let the Sun Go Down on Me.” Aging Burlesque stripper Madonna even had a number one 20 years ago, with “This Used to Be My Playground.” Indeed. The playground equipment is rusting out.
The Fed’s data underscore the depth of the wounds of the Great Recession and how far many families remain from healing. The median value of Americans’ debt did not change between 2007 and 2010. Meanwhile, the housing market crash inflicted particularly severe damage, with the Fed showing that the median value of Americans’ equity in their homes plunged 42.3 percent between 2007 and 2010.
Let’s add in the exorbitant and swiftly rising cost of higher education just for fun. Zerohedge at least found some new wealth related to that. Too bad it’s entirely phony. Homeowners could take out a second mortgage to pay for their kids’ educations, if their homes were still worth anything, which many homes are not thanks to the subprime loans engineered by the likes of a community organizer named Barack Somethingorother. Michael Jackson’s #1 hit “Black or White” is missing a color: Red.
To “Save the Best for Last” (a Vanessa Williams #1 in the spring of 1992), our national debt equaled the value of the entire US economy back in January.
So in the past 20 years, chances are that your personal wealth has grown and then contracted back down to where it was two decades ago, while your share in the massive national debt has topped the charts with a bullet.
In August 1992, Boyz II Men struck #1 with “End of the Road.”