Median household income crashed 1/3

Median household income crashed 1/3

Wonder why you feel so poor? Because you are.

According to a new study by the Russell Sage Foundation, in the last decade median household income crashed by 1/3, from $87,992 in 2003 to $56,335 in 2013. The crash started during the Republican Bush administration, but has not been made better by the Democratic Obama administration.

Control of Congress also was roughly half Republican, half Democratic during this period. But until Janet Yellen took over this year, the Federal Reserve Board was run by Republicans Alan Greenspan and Ben Bernanke. So the Fed inflationism we have suffered, with prices going up as you see every day, mostly must be blamed on the GOP.

Here’s the chart:

median income


So it’s a bipartisan disaster, with Republicans shouldering perhaps 55 percent of the blame, Democrats 45 percent.

At least we found out again, as if we needed to rerun the 1970s, that Fed inflationism and increased regulations (from President George W. Bush and the GOP congresses, as well as from President Barack Obama and the Democratic congresses), plus tax increases and wild spending increases don’t work. And unlike in the 1970s, when deficits were modest in comparison, deficits and debt don’t help, either.

The numbers also show that the “recovery” is a fraud. We’re just in a slightly less bad period of an ongoing recession caused by massive government confiscation and control of the economy.

And take a look at this chart:

wealth changes


It shows that, beginning with the Reagan tax cuts and recovery, wealth grew for every percentile of income except the poorest one (yellow squares), which at least held steady. The growth continued through the 1990s, when Democratic President Clinton first increased taxes, then cut taxes with the help of Republican House Speaker Newt Gingrich.

It was only under Bush that wealth crashed, with the poor getting hurt the most, their wealth being almost entirely wiped out. Obama the didn’t make things any better, except slightly for the poor.

Median wealth now is lower than before the Reagan reforms, meaning the years of progress under Reagan and Clinton have been completely wiped out — and reversed.

23 comments

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  1. Queeg
    Queeg 2 August, 2014, 12:04

    Try to tell you Doomers that your buddy globalists are cleaning you out daily…..

    Reply this comment
    • Donkey
      Donkey 2 August, 2014, 12:07

      Queegy, the government RAGWUS feeders are robbing the bank my deluded friend, with over 90% of our tax dollars being paid to benefits, pensions, salaries for government feeders. 🙂

      Reply this comment
  2. Donkey
    Donkey 2 August, 2014, 12:04

    There was never a recovery as you have noted John, this is a dog and pony show put on by the RAGWUS cabal. Sure I have seen my investments double, but not by actual GDP growth, but through manipulation of vapor paper dollars by the Fed. The next collapse will be twice as bad as the 2007 debacle, at that point the RAGWUS will be exposed as the corrupt stealing machine it has always been. 🙂

    Reply this comment
  3. Tesla_x
    Tesla_x 2 August, 2014, 12:37

    You think it’s bad now?

    Wait till next year and more effects of the billionaire and NRDC funded drought in Kalifornia coupled with obummercare kick into high gear to DESTROY what little expendable income most Americans have left.

    Reply this comment
  4. seanmorham
    seanmorham 2 August, 2014, 16:28

    Donkey, I enjoy talking to govt workers and retirees in People’s Republic of Kalifornia. They think I am crazy stupid to think the economic situation is grave. Their yearly pay/perk increases and the babble coming out of Sacramento( who cares about debt and underfunding) have them believing things are great. It is so much fun to have them ignore contrarian investment strategy as it relates to spending.
    When the bubble bursts, it should be a great time to buy for cash what the greedy leeches have bought. So much fun. Big corporations are also greedy, that has always been true. When the sleazy govt partners(economic development, food stamps at fast food dumps) with the corporations, it needs to be stopped or fascism is around the corner. The govt employees become the Stasi. I know my kids think pensions should have a shelf life. They will get to the point, where the solution is govt retirees with a shelf life. Better enjoy grandma this year, her time as grandma expires next March. God Bless America.

    Reply this comment
  5. NTHEOC
    NTHEOC 2 August, 2014, 17:03

    Tesla says,
    You think it’s bad now?
    ——————————————
    No we don’t , we actually think it’s very very good right now!!!! Go back down in your bunker and come out again when u think its time!!!!

    Reply this comment
  6. NTHEOC
    NTHEOC 2 August, 2014, 17:09

    Donkey says
    There was never a recovery
    ——————————-
    Yes, so ALL that commercial and housing development you see is just a mirage!! Lol!!! California is BOOMING. Only you sovereign citizen anti govt fruit cakes can’t see it!! BTW, your HBPD boys just signed a new contract with a raise!!! Pay up donk.

    Reply this comment
  7. S Moderation Douglas
    S Moderation Douglas 2 August, 2014, 17:14

    Holy krap. Who proofreads this stuff? According to US Census Bureau, inflation adjusted median household income in 2003 was $54,079. In 2012 it was $51,017. Nowhere near a 1/3 decrease.

    These charts, and the link, clearly state this is the median household WEALTH, not income.

    I reckon our household “wealth” started dropping considerably in 2007, just like in the chart. About the same time our home value dropped by $300,000.

    What the hale???

    Seilerism?

    Reply this comment
  8. S Moderation Douglas
    S Moderation Douglas 2 August, 2014, 17:24

    Deluded donkey: 90% of our tax dollars are NOT being paid to benefits, pensions, salaries for government workers.

    Reply this comment
  9. Bloggerusa1
    Bloggerusa1 2 August, 2014, 18:30

    The first line should state that…’median household net worth [not income] crashed by 1/3…’

    Reply this comment
  10. T Mind of Ted Your God
    T Mind of Ted Your God 2 August, 2014, 18:46

    LOL Now that JOBS are returning in force the Doomers ™ have to find a new cause for the daily crucifix…

    Zzzzzzzzzzzzzzz

    Reply this comment
  11. Skippingdog
    Skippingdog 4 August, 2014, 09:59

    SMD – You know the first thing they did here at CWD was to rid themselves of those overly demanding editors. Regardless of any claim of adherence to “journalistic ethics,” those editors would just make it too hard to generate anti-government rants if they also required evidence for the claims.

    Reply this comment
    • S Moderation Douglas
      S Moderation Douglas 4 August, 2014, 14:40

      One would think they would print a retraction or correction. There’s a HUGE difference between household wealth and household income.

      Then to place political blame based on a totally misrepresented concept just compounds the problem.

      At least, now we know why John thinks “half my salary goes to taxes”.

      Difficulty with fifth grade “word problems”.

      Reply this comment
  12. Skippingdog
    Skippingdog 4 August, 2014, 10:04

    Here’s one of the stories from which this was lifted. It’s nice to see that even Zero-Hedge recognizes that the loss in household wealth (not annual income) has been most severe at the lowest socioeconomic levels. Anything with even a passing knowledge of macroeconomics knows this lost of household wealth is directly related to the housing bubble burst, since housing value remains the primary source of wealth for the middle class.

    http://www.zerohedge.com/news/2014-07-26/americas-lost-decade-typical-household-wealth-has-plunged-36-2003

    Reply this comment
    • Donkey
      Donkey 4 August, 2014, 22:20

      Unless of course you are a RAGWUS feeding thief, then nothing you posted even mattered. 🙂

      Reply this comment
      • Skippingdog
        Skippingdog 5 August, 2014, 09:37

        Nice to see you’ve become nothing more than an embittered old man, pounding on your keyboard and occasionally wiping the spittle off of your screen. Pound on, Donk.

        Reply this comment
        • Donkey
          Donkey 5 August, 2014, 15:08

          I am very light on the keys my RAGWUS feeding friend. Fragged any toddlers lately Skdog? So brave and moral even teenage girls are on your radar for slaughter! 🙂

          Reply this comment
          • T Mind of Ted Your God
            T Mind of Ted Your God 6 August, 2014, 07:14

            Duncey–

            You’re not “light on the keys” little buddy–

            You’re LIGHT ON THE MEDS!

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