The Long Slow Recovery

Recent economic news provided two important statistics. At the current rate of job creation, it will take nine years to get back the number of jobs lost during the recession. The unemployment numbers could get worse in the months ahead.

Median house prices have declined 20 percent since 2005. The outlook is that it will take thirteen years for housing to recover its value. That explains why so many people own houses worth less than their mortgages.

Commerical real estate vacancy rates are high. So high, it may take a decade for them to get back to where the rates were.

It looks like a long road to recovery.

Thoughts On An Economic Recovery

Is the economy going to recover anytime soon? Don’t look to the middle class to help. In a word, people are tapped out. Consider the following: since the 1970′s, income for the average worker has not kept up with inflation. That means sons are earning less than their fathers. Meanwhile, he costs for necessities like health care, energy, and education continue to rise. If you are struggling to keep your head above water, this is probably the reason.

The growth in earnings went mainly to those at the top. In the 70′s, the top 1% of earners had an 8% share of the nations income. Today 23% of the nation’s income goes to the top 1%.

So don’t look to the middle class for increased spending to fuel an economic recovery. They have their hands full just paying the bills.