Does Your Own Personal Recession Continue?


The experts keep telling us the recession is over. Not long ago, President Obama talked about our own personal recessions, as if he has a clue. Well, it looks like millions of personal recessions continue. Not only is unemployment officially stuck above 9%, according to the New York Times, those lucky enough to be employed have seen their income drop.

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In a grim sign of the enduring nature of the economic slump, household income declined more in the two years after the recession ended than it did during the recession itself, new research has found.

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Between June 2009, when the recession officially ended, and June 2011, inflation-adjusted median household income fell 6.7 percent, to $49,909, according to a study by two former Census Bureau officials. During the recession — from December 2007 to June 2009 — household income fell 3.2 percent.

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The finding helps explain why Americans’ attitudes toward the economy, the country’s direction and its political leaders have continued to sour even as the economy has been growing. Unhappiness and anger have come to dominate the political scene, including the early stages of the 2012 presidential campaign. (Read More)

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The decline is even worse for those who lost their jobs and found new jobs. Another study shows they are now earning over 17% less than they used to, but at least they’re employed. The author of the first study calls the decline “a significant reduction in the American standard of living.” Throw in the rising price of food and energy, and it’s a double-whammy against our standard of living.

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