(Source: Economic Populist, June 13, 2012)
NEW YORK — The Federal Reserve released a report, the 2010 Survey of Consumer Finances. This is a report on household wealth from 2007-2010, removing effects of inflation. No surprise, median net worth declined by 38.8% from 2007 to 2010 and is down to 1992 levels. Why this should be no surprise is due to the housing bubble and declining home values. A home is the largest asset many people have.
Yet what is more disturbing from this report is income. Median income dropped 7.7% in the three year time period from 2007-2010. That’s before taxes and adjusted to removed the effects of inflation. The mean, or average drop in real income was even worse, 11.1%.
Bottom line, it was the middle class that got hammered.
Full story: Economic Populist