Bloomberg: The Financial Crisis Cost Every American $70,000, Fed Study Says

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Bloomberg: The Financial Crisis Cost Every American $70,000, Fed Study Says

Families across Ohio—and nationwide—suffered the consequences of the 2008 financial crisis. Some lost jobs, their homes, and the savings they’d put aside for their children’s educations.

Total, research shows the recession cost the average American $70,000 in lifetime income.

This is exactly why we can’t afford to forget what led to the crisis: corporate greed. And it’s why this administration’s recent actions that make it easier for big banks and Wall Street to take advantage of consumers should cause major concern.

Sherrod stands up for hardworking Americans every day. We need to keep him in the Senate, where he’ll continue to fight back against predatory practices like those that caused the devastation of 2008.

Bloomberg: The Financial Crisis Cost Every American $70,000, Fed Study Says

Jeanna Smialek – August 13, 2018

Key points:

  • America never made up the growth it lost in the 2008 global financial crisis and the recession it triggered. A decade later, U.S. households are still counting the cost.

  • According to research from the Federal Reserve Bank of San Francisco, gross domestic product remains well below what its 2007 trend would have implied.

  • It’s unlikely the economy will ever make up that lost ground, costing the average American an estimated $70,000 in lifetime income.

  • Experts arrive at the lifetime income loss by taking per-capita GDP in 2007 and discounting at an annual 5 percent rate to calculate its present value.

Read more here.