3Center or American Progress | Economic Snapshot or February 2013
ping or he ourh year in a row. American amilies have experienced no incomegains during he curren economic recovery since 2009, exacerbaing he losses haoccurred during he Grea Recession.
Income inequality on the rise.
Households a he 95h percenile, wih incomeso $186,000 in 2011, had incomes ha were more han nine imes—9.2 imes, o be exac—he incomes o households a he 20h percenile, whose incomes were$20,262. Tis is he larges gap beween he op 5 percen and he botom 20 per-cen o households since he U.S. Census Bureau sared keeping record in 1967.
Poverty stays high.
Te povery rae ell o 15 percen in 2011, down rom 15.1 per-cen in 2010. Te Arican American povery rae was 27.6 percen, he Hispanic rae was 25.3 percen, and he whie rae was 9.8 percen. Te povery rae or childrenunder he age o 18 sood a 21.9 percen. More han one-hird o Arican Americanchildren—38.8 percen—lived in povery in 2011, compared o 34.1 percen o Hispanic children and 12.5 percen o whie children.
Te prolonged economicslump, ollowing an excepionally weak labor marke beore he crisis, has aken amassive oll on he mos vulnerable.8.
Employer-sponsored benefits disappear.
Te share o people wih employer-spon-sored healh insurance dropped rom 59.8 percen in 2007 o 55.1 percen in 2011.
Te share o privae-secor workers who paricipaed in a reiremen plan a work ello 39.2 percen in 2011, down rom 42 percen in 2007.
Families have less eco-nomic securiy han in he pas due o ewer employmen-based benes, requiringmore privae savings o make up he dierence.9.
Family wealth losses linger.
oal amily wealh is down $9.1 rillion (in 2012dollars) rom March 2007—is las peak—o Sepember 2012. Homeowners onaverage own only 44.8 percen o heir homes—compared o he long-erm aver-age o 61 percen beore he Grea Recession—wih he res owed o banks.
Homeowners sill have a lo o deb. Tis slows consumpion growh, as householdssill do no have a lo o collaeral or banks o loosen heir lending sandards.10.
Household debt is still high.
Household deb equaled 107.7 percen o afer-ax income in Sepember 2012, down rom a peak o 126 percen in March 2007.
Teunprecedened all in deb over he pas ew years has resuled rom igh lend-ing sandards, alling ineres raes, massive oreclosures, and increased householdsaving. Bu urher deleveraging will likely slow unless incomes rise aser han hey have in he pas, since mos acors ha have helped reduce household deb in hepas have slowed or disappeared, such as alling ineres raes and he payroll ax holiday. Tis high deb could coninue o slow economic growh, as householdsocus on saving raher han on spending more.