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A Long, Steep Drop for Americans’ Standard of Living

Posted By admin On October 20, 2011 @ 3:05 am In U.S. News | Comments Disabled

Ron Scherer
Christian Science Monitor [1]
October 20, 2011

Think life is not as good as it used to be, at least in terms of your wallet? You’d be right about that. The standard of living for Americans has fallen longer and more steeply over the past three years than at any time since the US government began recording it five decades ago.

Bottom line: The average individual now has $1,315 less in disposable income than he or she did three years ago at the onset of the Great Recession – even though the recession ended, technically speaking, in mid-2009. That means less money to spend at the spa or the movies, less for vacations, new carpeting for the house, or dinner at a restaurant.

In short, it means a less vibrant economy, with more Americans spending primarily on necessities. The diminished standard of living, moreover, is squeezing the middle class, whose restlessness and discontent are evident in grass-roots movements such as the tea party and “Occupy Wall Street” and who may take out their frustrations on incumbent politicians in next year’s election.

What has led to the most dramatic drop in the US standard of living since at least 1960? One factor is stagnant incomes: Real median income is down 9.8 percent since the start of the recession through this June, according to Sentier Research in Annapolis, Md., citing census bureau data. Another is falling net worth – think about the value of your home and, if you have one, your retirement portfolio. A third is rising consumer prices, with inflation eroding people’s buying power by 3.25 percent since mid-2008.

Full article here [1]


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URLs in this post:

[1] Christian Science Monitor: http://www.cnbc.com/id/44962589

[2] 27 Signs That The Standard Of Living For America’s Middle Class Is Dropping Like A Rock: http://www.prisonplanet.com/27-signs-that-the-standard-of-living-for-america%e2%80%99s-middle-class-is-dropping-like-a-rock.html

[3] Federal Regulations Cut Standard of Living by 75 Percent Over 56 Years: http://www.prisonplanet.com/federal-regulations-cut-standard-of-living-by-75-percent-over-56-years.html

[4] Bank of England: Standard of Living to Plunge at Fastest Rate Since 1920s: http://www.prisonplanet.com/bank-of-england-standard-of-living-to-plunge-at-fastest-rate-since-1920s.html

[5] U.S. incomes see largest drop in 20 years: http://www.prisonplanet.com/u-s-incomes-see-largest-drop-in-20-years.html

[6] ECB To Set “Fair” Cypriot Standard Of Living Via Capital Controls: http://www.prisonplanet.com/ecb-to-set-fair-cypriot-standard-of-living-via-capital-controls.html

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