The New York Times had an interesting article recently about the continuing fall in income long after the recession “ended” in 2009.  According to economists, the most recent recession ended in June 2009.  From June 2009 until June 2011, household income continued to fall by 6.7 percent.  Household income fell despite the overall improvement in the economy that allowed economists to say the recession was “over.”

This decline in income is even more pronounced when compared to the inflationary pressures of rising energy costs and food costs.  Not only has our income gone down as a nation, but prices for the things we need continue to rise.  The result is a growing angst that there is money out there somewhere but it is not going to benefit the average American.  It now takes an unemployed person nearly 41 weeks to find new employment.  And once they find a job, their income falls an average of 17.5%.

These numbers are mind-boggling and I continue to have clients who struggle to provide for their most basic needs despite looking for work for years.  Without an increase in income of the slowing of inflation, the American public will continue to feel a decrease in their standard of living and consumer confidence.

 

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