Incomes Have Dropped Twice as Much During the 'Recovery' as During the Recession

The Weekly Standard ^ | August 23, 2013 | JEFFREY H. ANDERSON

[don-o]

President Obama likes to talk about income inequality, but what matters far more is the actual income of the typical American. And how has the typical American household income fared on Obama's watch? Well, the economic "recovery" has now spanned an Olympiad, and during that time the typical American household income has not only dropped—it has dropped more than twice as much as it did during the recession.

New estimates derived from Census Bureau's Current Population Survey by Sentier Research indicate that the real (inflation-adjusted) median annual household income in America has fallen by 4.4 percent during the "recovery," after having fallen by 1.8 during the recession. During the recession, the median American household income fell by $1,002 (from $55,480 to $54,478). During the recovery—that is, from the officially defined end of the recession (in June 2009) to the most recent month for which figures are available (June 2013)—the median American household income has fallen by $2,380 (from $54,478 to $52,098). So the typical American household is making almost $2,400 less per year (in constant 2013 dollars) than it was four years ago, when the Obama "recovery" began.

Importantly, these income tallies include government payouts such as unemployment compensation and cash welfare. So Obama's method of funneling ever-more money and power to Washington, and then selectively divvying some of it back out, clearly isn't working for the typical American family. Nor would his proposed immigration bill help the income prospects of the median American. And perhaps it's just a coincidence, but the span of time over which the typical American household's income has dropped by about $2,400 a year (during an ostensible "recovery") corresponds almost exactly with the span of time that we've been living with the looming specter of Obamacare—which began to be debated in earnest around June 2009.

[don-o]

How long CAN a house of cards stand?

[proxy_user]

Er, whose incomes? Some people are doing OK, thanks to helicopter Ben.

[formosa]

Again, I humbly ask, “What recovery?”

[tbw2]

I think it will fall when the Obamacare mandatory insurance fines and fees kick in. You cannot afford to pay 10% for health insurance AND 25% or more in taxes AND debt load and daily bills.
Obamacare mandates high in health insurance and bans low cost, catastrophic only plans that work for most people (covers you in a car crash, pay for your own birth control and sick kid visits).