The Washington Post: The bottom 90% are still poorer than they were in 2007

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The Washington Post: The bottom 90% are still poorer than they were in 2007

For many Americans, the 2008 financial crisis wreaked havoc on their savings, plans, and ability to move up the economic ladders.

But 10 years later, not enough has changed: A new study shows that while the wealthy have gotten wealthier, most people are between 17-35% poorer than they were nearly a decade before.

That’s ridiculous. It’s also a reminder of why we need leaders like Sherrod in the Senate, fighting for policies that help hardworking families get ahead—not leave them further behind. If you agree, show your support now:

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The Washington Post: The bottom 90 percent are still poorer than they were in 2007

Matt O’Brien – October 1, 2018

Key points:

  • It turns out the ultimate luxury good of the past 10 years has been the economic recovery itself.
  • According to numbers put together by researchers at the Federal Reserve, the top 10% of working-age households were the only ones who, adjusted for inflation, were richer on average in 2016 than they were in 2007.
  • Everyone else was somewhere between 17 to 35% poorer than they’d been almost a decade before.
  • Consider this: Between 2007 and 2016, homeownership fell 12 percentage points among the middle class, 9 percentage points of which was due to people who had never owned a home in the past never buying one during that time.
  • The housing crash, in other words, turned more people into renters, so the housing comeback hasn’t helped nearly as many people as had been hurt.
  • It’s the same story with stocks. The bottom 60% of households just never owned that many to begin with, but they own even less today.
  • The researchers estimate the bottom 90% would have been 50 to 60% richer in 2016 if they had owned as many homes and stocks as they had in 2007.
  • Elites might be in a self-congratulatory mood because they feel like they saved the system, but that’s really only true for themselves. Not that the government is doing much to help.
  • Everyone else is still struggling just to get back to where they were before 2008, and they aren’t particularly close.

Read more here.