While the technical indicators of economic growth show that we are not in a recession, but a very tepid recover, there is one simple explanation why most Americans feel we are still in a recession. According, to a new study reported by the Washington Post, median household income has actually dropped more precipitously since the end of the recession than during the actual recession.
From June 2009 to June 2012, inflation-adjusted median household income fell 4.8 percent, to $50,964, according to a report by Sentier Research, a firm headed by two former Census Bureau officials.
Incomes have dropped more since the beginning of the recovery than they did during the recession itself, when they declined 2.6 percent, according to the report, which analyzed data from the Census Bureau’s Current Population Survey. The recession, the most severe since the Great Depression, lasted from December 2007 to June 2009.
Overall, median income is 7.2 percent below its December 2007 level and 8.1 percent below where it stood in January 2000, when it was $55,470, according to the report.
This is what a Keynesian recovery looks like. For the purpose of achieving politically-motivated short-term gains with stimulus and other government interventions, Obama has created long-term stagnation.
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