Business

Recovery? Household Income Has Fallen More in Past Three Years Than During the Recession

No matter how hard some people try to spin the numbers, the U.S. economy just isn’t on the “right track” for many Americans.

Consider, for example, the fact that U.S. household median annual incomes have dropped from $53,508 to $50,964 since June 2009, according to new report from Sentier Research.

That’s a decline of 4.8 percent over a three-year period.

And that’s not all: As Business Insider’s Jill Krasny notes, “several types of households fared much worse than that.”

“[A]lmost every group is worse off now than it was three years ago, with the exception of households with householders 65-years-old and over,” said Sentier Research’s Gordon Green.

Well, at least we got that, right?

Based on a closer inspection of the report, Business Insider put together the following list of who’s “falling behind”:

Non-family households: This group saw its real median annual income decline by 7.5 percent, from $33,002 to $30,512. Family households declined a little less than that by 4.7 percent.

Single households: Men living alone saw their real median income drop by 9.4 percent, while women’s dropped by 4.5 percent.

Black households: Compared to white and Hispanic households, Black householders’ income declined the most by 11.1 percent, from $35,567 to $32,498.

Householders without a college degree: People with some education but no degree saw their real median annual income slide by 9.3 percent, from $50,948 to $46,200. Associates degree holders saw theirs taper off by 8.6 percent, from $60,602 to $55,374.

Self-employed households: This group’s annual income fell 9.4 percent, from $73,695 to $66,752. Private sector workers fared only a little bit better, with a decline of 4.5 percent.

Households in the West: In contrast to households in the Midwest region which barely saw a decline, households in the West felt their yearly incomes decrease by 8.5 percent, from $59,065 to $54,071.

Households with householders between 55 and 66: Compared to millennials who saw their real median household income drop 8.9 percent, boomers’ declined by 9.7 percent, from $61,716 to $55,748.

Final Thought: Per the Sentier Research report, the decline in household income began in 2009. What else supposedly began in 2009? Here’s a hint: the so-called “recovery” (okay, that‘s not so much of a hint as it’s an answer).

You know what this means, right? It means household income has fallen more during the “recovery” (4.8 percent) than it did during the recession (2.6 percent). Just think about that.

Follow Becket Adams (@BecketAdams) on Twitter

Front page photo courtesy the AP.

Comments (41)

  • Fromm
    Posted on September 2, 2012 at 1:38pm

    Shocking, the Federal Reserve found that Net Household Income has fallen 40% since 2007!!!
    At 38 minutes…http://tinyurl.com/8uc4ljr

    Report Post » Fromm  
  • Robert Hawk
    Posted on August 29, 2012 at 6:32am

    Expendable income? What expendable income?
    With the sharp rise in commodities over the past 4 years (some in the 300 + % range), the cost of basic goods to survive has skyrocketed. Groceries, Necessary items, Gasoline, all have risen sharply over the past 36-40 months, add to that the vast increases in taxation and you can start to see why American households are stretched to the limits.

    Most American households remain on a single salary, and there has been little recovery to that situation. Yes there are programs for refinance of underwater mortgages, however most Americans do not qualify to meet the absurd standards setup for those programs (ie at least two months behind on your mortgage payment). Americans have spent what little they have in savings and dug into their 401k programs to keep afloat. The economy drags along at an almost unbearable 1% or less in growth, as the FED continues to purchase bonds as the means of improving the economy, when in actuality they are simply loaning money to the banks on the cheep, and the lower rates are not getting to the consumer (their plan is not helping Americans).

    We need another approach, we need an approach driven by the consumer, the one who actually creates market demand. All this government spending and the FED making Banking loans at near 0 % interest is simply amplifying the failure and causing the results to linger on further. But there is an answer its called the 7th year of release.

    Report Post » Robert Hawk  
  • mash4077
    Posted on August 28, 2012 at 9:36pm

    this is news? where have they been? you don’t have to tell me, I’ve been feeling and living it since 2008, when we knew obozo was coming and things were going to get worse. if this socialist POS gets another term, GAME OVER!!!!!!!!

    Report Post » mash4077  
  • Xiccarph
    Posted on August 28, 2012 at 8:07pm

    It isn’t just about “household income”. What is the REAL inflationary rate these days folks? Not the ridiculous 2-3% “official” rate the Gov’t feeds us. Anyone believe the real inflation isn’t more like 8-12%, depending on where one lives? You loose actual income averages AND/OR buying power for a set value each year. For a year 2000 $10000 dollars what is the buying power now of that $10k after 4 years of Obama and 8 years of Bush? How many have had a raise, or even a raise above the “official” inflation rate, in the last 4 or five years? It would cost you 15 to 18k + to live at the same standard. Its not just income levels, its inflation, and that screws everyone.

    Report Post »  
  • StronzateDiDestra
    Posted on August 28, 2012 at 7:03pm

    Good thing the Repugnicans had been preparing rhe middle class?

    A report by the Economic Policy Institute which used the same data. From 2000-07, the Institute said the real median income of working age households fell from $61,574 in 2000 to $59,460 in 2007—a decrease of $2,114.

    http://www.epi.org/issues/income-and-wages/

    http://www.epi.org/files//household_wage.png

    Report Post » StronzateDiDestra  
    • rosegrower
      Posted on August 31, 2012 at 11:35am

      And your point? A 4% decrease during the year the financial sector crashed as compared to a 9% decrease during what Obama touts as a recovery? So, let’s keep Obama and get more recovery results like this!!! Nice job – too bad you went to a government school and failed basic math.

      Report Post »  
  • flatbroke
    Posted on August 28, 2012 at 6:05pm

    You dont have to tell me, I was making good money in 2009, now i am barely scraping by, and i have no money to save, no money to do grocery shopping, i have to eat at my moms. I want Obama outta there in november, and i dont want food stamps, i want my good money back!

    Report Post » flatbroke  
  • Couyon64
    Posted on August 28, 2012 at 5:06pm

    Not for the welfare parasites!

    Report Post » Couyon64  
  • 762x51
    Posted on August 28, 2012 at 4:53pm

    “Household Income Has Fallen More in Past Three Years Than During Recession”

    That should be the lead in of EVERY Romney ad between now and Nov. 6th.

    Report Post »  
  • Deibido
    Posted on August 28, 2012 at 1:45pm

    Well… the Obama plan works. If we can’t get people to step-up and grow into real earnings and jobs then we’ll bring everybody down a few notches so everyone shares the misery pf poverty equally. Brilliant, right? It has been his plan since being trained by his mentor the communist…

    Report Post »  
  • jackact
    Posted on August 28, 2012 at 1:41pm

    America, are you better off than you were 4 years ago?
    Real change is possible in November.

    Report Post »  
  • Centralsville
    Posted on August 28, 2012 at 1:34pm

    It’s funny, Obama is destroying the Middle Class but I saw a poll where 52 percent of Middle Class voters thought he would be better for them than Romney. While wages are dropping the cost of living is going up fast while they keep telling us there is no inflation. They keep printing more money and raising the debt borrowing 40 cents of every dollar spent eroding our buying power. Obama has stood in the way of real energy production while pushing for the conversion of corn to gasoline,attacking the coal industry, drilling and wasting money on solar and wind. Converting corn to gas makes food prices soar. He has encouraged millions of illegals in to lower all workers wages. All this while he wants to raise our taxes and is getting ready to start the biggest new government program of all in Obamacare. If the Republicans have a brain at all they will stress this real drop in income of the Middle Class at the convention. They should pound home the debt and the borrowing of 40 cents of every dollar spent. Don’t just say the debt in trillions of dollars, that has lost meaning to the average idiot American voter. They can’t comprehend that number. They need to break the burden down to each household and to the amount of debt each new baby is born with, something they can wrap their small brains around. Remember, Americans are stupid, they already proved that when they voted for Obama the first time.

    Report Post »  
    • rosegrower
      Posted on August 31, 2012 at 11:38am

      Never trust polls, my friend. I would bet a dollar to a doughnut that the “middle class” respondents were all blue collar union employees – paid hacks for the DNC, in other words. The pollsters probably screened out any salaried people, small business owners, etc. OR redefined “middle class” to be those earning $9000.00 to $18,000.00 a year (the illegal immigrant population, working college students and what used to be called the “working poor.”)

      Report Post »  
  • BryanB
    Posted on August 28, 2012 at 1:06pm

    When you take in to consideration also that most “Households” have lost one income, those numbers are going to fall even farther.

    There are so many different variables to the loss of individual and family wealth, that these numbers in this article, could never account for all the financial loss of Household Income.

    I don’t believe you can ever put it into percentages, of the financial devastation that President Obama and his Administration has caused to the American People, especially to the Middle Class………..

    Report Post » BryanB  
  • thekuligs
    Posted on August 28, 2012 at 12:53pm

    And how much have food prices INCREASED in that same time frame? How much have gas prices increased? Recovery my butt.

    Report Post » thekuligs  
    • 762x51
      Posted on August 28, 2012 at 4:01pm

      Those are the real metrics. Gas of course has DOUBLED since the Enemy of the United States was enthroned. ******** act like we don‘t go to the grocery store and gas station every week so we aren’t aware that the economy still sucks, that if they lie to us enough we will believe them not our own experiences, idiots.

      This is why every news outlet in the country needs to go out of business, their coverup of the facts on the economy have made them complicit with the enemy, collaborators, nothing more.

      Report Post »  
  • MDDAWG
    Posted on August 28, 2012 at 12:52pm

    I am between 55-64.
    My income dropped 30% in the past 2 years.
    Recovery?

    Report Post » MDDAWG  
  • FREEDOMoverFEAR
    Posted on August 28, 2012 at 12:43pm

    This isn’t politicians fault this is due to Internet enabling the majority of businesses to outsource. H&r Block can have an Indian to do your taxes for a couple dollars why pay an American 100 times that. Same with doctors, now walk in clinics send x-rays to doctors in India who can look at them and make a diagnosis for 100th of the cost. The Internet I believe is the main factor in our economics fluctuations. The 90′s we boomed because the Internet allowed businesses in New York to be able to sell products to a person in Wyoming. Then when the Internet went global we saw outsourcing spring up. There’s nothing wrong with this but Americans need to realize a lot of them are overpaid doing something that can be outsourced so they need to plan for what to do if their job is eliminated. I believe we’re going to see a depression and a world war no matter what our politicians do. It’s evolution.

    Report Post » FREEDOMoverFEAR  
  • FREEDOMoverFEAR
    Posted on August 28, 2012 at 12:35pm

    Sucks for all of those poor people my income has grown significantly in the last three years oh and I’m only 27. Work a lot save a lot and take advantage of opportunities.

    Report Post » FREEDOMoverFEAR  
  • woodyee
    Posted on August 28, 2012 at 11:43am

    “Household Income Has Fallen More in Past Three Years Than During Recession”

    But Wait! There’s MORE! Come January, you’re paychecks will SHRINK because of the “rules and regulations” required by Gaybama-care, and the Bush tax-cuts are going to allowed to expire by Gaybama.

    SO – those of you who are astute enough to check your pay stubs physically or electronically will see the difference. Those of you who BUDGET household expenses will FEEL the difference.

    Those of you too freagin involved in sports, porn, mainstream media tv and other daily minutiae, will ignore it until your funds run dry “unexpectedly”, then join your PUBLIC union slobs in demanding more from the gobblement (that means you’ll demand that they tax YOU and everyone else so you can see your bottom dollar go up.

    Wouldn’t it be nice for America if you ignoramuses demanded pay increases in the form of REDUCED TAXES? Yeah, I know, makes too much sense for you to comprehend. Your brain is probably starting to fizzle as you reach for your purple and yellow SEIU woobie to comfort you in times when your forced to think for yourselves…

    Report Post » woodyee  
  • Winedude
    Posted on August 28, 2012 at 11:37am

    Let’s see…corporate profits and stock prices are at or near record highs for the past 5 years. What does it mean? I‘m not sure but it’s quite obvious that “trickle-down” economics doesn’t work. It’s time to try something new…

    Report Post »  
    • AvengerK
      Posted on August 28, 2012 at 11:43am

      By all means WHINEDUDE….tell me how GM’s profits are doing…..you know…the one Obama had a hand in “saving” by ripping it’s bond holders off and putting the reins of power into the hands of the UAW?

      Report Post »  
    • Rothbardian_in_the_Cleve
      Posted on August 28, 2012 at 11:59am

      So Obama and Bush were using “trickle down economics”? Hmmmm, I always thought it was Keynsian economics. Well really it was crony capitalism (plutocracy) but who really keeps track right?

      Report Post » Rothbardian_in_the_Cleve  
    • LakeHartwellSailor
      Posted on August 28, 2012 at 12:00pm

      It’s time to try something new? Oh, you mean elect Romney!!!!! That will help, but it won’t be a quick fix. Now, if you are referring to RE-electing Obama…..that’s nothing new, we’ve tried that and it is NOT working! You might want to re-read the article if your thinking Progressive policy is going to reverse the numbers cited in this article.

      Report Post » LakeHartwellSailor  
    • osgeek
      Posted on August 28, 2012 at 12:05pm

      What it tells you is that OWEblamer’s policies are not conducive to creating an atmosphere of job growth. This happens in all socialist based governments as the wealth starts to flow from citizens to the government and their supporters. Yes the rich get richer and the middle class fades into the sunset as a two class system emerges, the haves and have nots. OWEblamer’s dream is the body politic (elitists, the haves) and the proletariat (subjects, the have nots) We are rapidly heading that way and most people are too stupid to realize this as they are lulled and distracted by TV, sports or long hours at the office.

      Report Post »  
    • matinva
      Posted on August 28, 2012 at 12:07pm

      There is no such thing as ‘trickle-down economics’. That‘s a hoax perpetrated by losers like you who aren’t smart enough to understand what it takes to run a business. The ‘trickle-down’ effect falls on business owners who are most often the LAST to be paid, if they get paid at all. Having run a business for over 35 years, there were many times when all my employees, suppliers and utilities had to be paid first. If there was something left over, then I got mine. You would do well to stick to stick to things you actually know something about.

      Report Post » matinva  
    • KeithOlberdink
      Posted on August 28, 2012 at 12:18pm

      Try something new? Try what? It’s all been tried and the other systems have failed. America hasn’t been a truly capitalist system in 100 hundred years anyway. We have 2 systems co-existing right now and the system is crashing because of it. Government and regulation needs to be reduced all around by atleast 50% and America will flourish again. Government is THE PROBLEM.

      Report Post » KeithOlberdink  
    • Brainmuffin
      Posted on August 28, 2012 at 12:42pm

      It means you are clueless.

      Report Post »  
    • marcus_arealius
      Posted on August 28, 2012 at 3:20pm

      Trickle down – Will Rogers? Humorist? Perhaps you should read the writings of a true economist – Thomas Sowell.. a black man.

      Report Post »  
  • AvengerK
    Posted on August 28, 2012 at 11:36am

    oh come one…Obama’s going to pivot to focus like a laser on jobs any minute now…ok now….ok..now…oooookaaaay…now.
    What‘s this like his eleventh or twelfth time he’s turned to pivot and focus like a laser on jobs?

    Report Post »  
    • CatB
      Posted on August 28, 2012 at 11:49am

      It’s an Obamanation … down sized.

      Report Post »  
  • watersRpeople
    Posted on August 28, 2012 at 11:34am

    People who tell middle-class people to buy gold (however they will sell the gold as things decline as they play by the rules), the warnings they are giving people means nothing, because you are nothing or you would have thought about the thing I have said.

    Report Post »  
    • watersRpeople
      Posted on August 28, 2012 at 11:44am

      Most people not only don’t have toleration for rambunctious children, but they also have no toleration for getting smacked directly in the face with an no angle truth of reality, because it doesn’t come with a forked or silver tongue.

      Report Post »  
  • watersRpeople
    Posted on August 28, 2012 at 11:31am

    Yes and while income keeps falling, all the gold and other commodities middle-class people have purchased for times of trouble will increasingly be sold to pay bills, because they play by the rules – leading to them having nothing left when they actually need it.

    Report Post »  
  • Rothbardian_in_the_Cleve
    Posted on August 28, 2012 at 11:27am

    In addition, if you look at realized inflation with food and energy and sans the owner occupied rent adjustment people have seen between 6-9 percent inflation as well. Incomes going down and prices going up. Just wait until healthcare costs go up under Obamacare. Welcome to stagflation people.

    Report Post » Rothbardian_in_the_Cleve  
  • 13th Imam
    Posted on August 28, 2012 at 11:27am

    Those wascally wich weepubwicans, ( Fwank Speak)

    Report Post » 13th Imam  
  • Snowleopard {gallery of cat folks}
    Posted on August 28, 2012 at 11:27am

    Now think of what it will be with a second term of Obama at the helm.

    Report Post » Snowleopard {gallery of cat folks}  
    • Popp40
      Posted on August 28, 2012 at 11:33am

      We will all be equally poor….well except those liberal elites…what is that saying “Socialism is good for everyone expect the Socialists”

      Report Post »  
    • FREEDOMoverFEAR
      Posted on August 28, 2012 at 12:33pm

      Speak for yourself I’ll never be poor. Doesn‘t matter what government we have doesn’t matter who’s president I make money.

      Report Post » FREEDOMoverFEAR  
  • Silversmith
    Posted on August 28, 2012 at 11:24am

    These figures should be enough for any sane individual to make a choice in November.

    Silversmith

    Report Post » Silversmith  
    • Landon410
      Posted on August 28, 2012 at 12:21pm

      a lot of people are not sane

      I would like to see the % increase people on welfare got during the same time

      Report Post »  

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