3Center or American Progress | Economic Snapshot or April 2013
he ourh year in a row. American amilies as a whole have experienced no incomegains during he curren economic recovery since 2009, exacerbaing he losses haoccurred during he Grea Recession.
Income inequality on the rise.
Incomes o households in he 95h percenile—wihincomes o $186,000 in 2011—were more han nine imes he incomes o house-holds in he 20h percenile, whose incomes were $20,262. Tis is he larges gap beween he op 5 percen and he botom 20 percen o households since he U.S.Census Bureau sared keeping record in 1967.
Poverty stays high.
Te povery rae ell o15 percen in 2011, down rom 15.1 percenin 2010. Te Arican American povery rae was 27.6 percen; he Hispanic povery rae was 25.3 percen; and he whie rae was 9.8percen. Te povery rae or children underhe age o 18 sood a 21.9 percen. More hanone-hird o Arican American children—38.8percen—lived in povery in 2011, comparedo 34.1 percen o Hispanic children, and 12.5percen o whie children.
Te prolongedeconomic slump, ollowing an excepionally weak labor marke beore he crisis, has aken amassive oll on he mos vulnerable ciizens.
Employer-sponsored benefits are disappear-ing.
Te share o people wih employer-sponsored healh insurance dropped rom59.8 percen in 2007 o 55.1 percen in 2011, he mos recen year or which daaare available.
Te share o privae-secor workers who paricipaed in a reiremenplan a work ell o 39.2 percen in 2011, down rom 42 percen in 2007.
Familiesnow have less economic securiy han in he pas due o ewer employmen-based benes, which requires more privae savings o make up he diference.
Family wealth losses still linger.
In December 2012 oal amily wealh was down$8.4 rillion—in 2012 dollars—rom is las peak in March 2007. Homeownerson average own only 46.6 percen o heir homes—compared o he long-ermaverage o 61 percen beore he Grea Recession—wih he res owed o banks.
Homeowners’ massive deb slows household spending growh, as householdssill do no have a lo o collaeral or banks o loosen heir lending sandards, andhouseholds spend less han hey oherwise would on new homes and on oherlarge-icke iems.
Household debt is still high.
Household deb equaled 105.5 percen o aer-ax
Wealth to personal disposable income, 1952 to 2012
Source: Board of Governors, Federal Reserve System, “Release Z.1 Flow of Funds Accounts of the United States”(2012).
Percent of after-tax income
0%200%400%600%800%March 1952March 1967March 1982March 1997March 2012