Federal Reserve’s shocking revelation figures of fall in the Net worth Incomes of American Families

The Federal Reserve Survey of the Consumer Finance revealed shocking details of how the current economic crisis left the median American family in 2010 with incomes declining to the levels of early 1990’s that erased almost two decades of accumulated prosperity. This report covers the years 2007 to 2010 exhibiting the impact of the so called Great Recession. The median family income fell to $45,800 in 2010 from $49,600 in 2007 after adjusting these figures for inflation.  About three quarters of the loss is ascribed directly to the crash in the housing prices.

Familial incomes continued to decline which was a trend prior to the crisis but speeded up over the same period. This survey which is released every three years is one of the broadest and deepest sources of information about the financial health of the American families.The study further highlighted that drop in net worth is marked more in Black and Hispanic households than in Whites.

 

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