3Center or American Progress | Economic Snapshot or July 2012
adjused dollars since 1996. I ell again by 2.3 percen in 2010, an acceleraeddecline afer median income dropped by 0.7 percen in 2009. American amiliessaw ew gains during he recovery beore he crisis hi in 2008 and experienced noincome gains during he curren economic recovery afer 2009.
Income inequality is on the rise.
Households a he 95h percenile, wih incomes o $180,810 in 2010, had incomes more han nine imes—9.04 imes, o be exac—heincomes o households a he 20h percenile, which had incomes o $20,000. Tis ishe larges gap beween he op 5 percen and he botom 20 percen o householdssince he U.S. Census Bureau kep record in 1967.
Poverty continues to rise across a wide spectrum.
Te povery rae rose o 15.1percen in 2010—is highes rae since 1993. Te Arican American povery rae was27.4 percen, he Hispanic rae was 26.6 percen, and he whie rae was 9.9 percenin 2010. Te povery rae or children under he age o 18 sood a 22 percen. Morehan one-hird o Arican American children (39.1 percen) lived in povery in 2010compared o 35 percen o Hispanic children and 12.4 percen o whie children.
Te prolonged economic slump, ollowing an excepionally weak labor marke beore he crisis, has aken a massive oll on he mos vulnerable.9.
Employer-sponsored benefits disappear.
Teshare o people wih employer-sponsoredhealh insurance dropped rom 59.8 percenin 2007 o 55.3 percen in 2010.
Te share o privae-secor workers who paricipaed in areiremen plan a work ell o 39.5 percen in2010, down rom 42 percen in 2007.
Familieshave less economic securiy han in he pas dueo ewer employmen-based benes, requiringmore privae savings o make up he dierence.10.
Family wealth losses linger.
oal amily wealhis down $10.9 rillion (in 2012 dollars) romis las peak in June 2007 o March 2012. Andhomeowners on average own a near-record low o only 40.7 percen o heir homes, wih heres owed o banks.
Homeowners eel pressureo save more and consume less o rebuild heirequiy, slowing consumer spending and holding back economic growh.11.
Household debt is still high.
Household deb equaled 109.2 percen o afer-ax income in March 2012, down rom a peak o 129.1 percen in Sepember 2007.
Te unprecedened all in deb over he pas our years resuled rom igh lend-
Household debt to after-tax income, 1952 to 2011
Source: Calculations based on Board of Governors, Federal Reserve, 2011, Flow of Funds Accounts of the UnitedStates, Washington, D.C.: BOG.
M a r - 5 2 M a r - 6 7 M a r - 8 2 M a r - 9 7 M a r - 1 2
Percent of after-tax income