Ben Bernanke Admits Economic Recovery is One-Sided

The Wall Street Cheat Sheet has the story Rich Dad, Poor Dad: Ben Bernanke Admits Economic Recovery is One-Sided.

Research from the Minneapolis Federal Research [sic] shows that the financial crisis pushed down earnings among low-income  households. The study said that “Earnings among the bottom 20 percent of U.S. wage and salaried workers fell by about 30 percent during the downturn compared with the median income, as workers lost their jobs or left the labor market.” Researchers Fabrizio Perri and Joseph Steinberg said that the bottom 20 percent of the U.S. has never done so bad as earnings for that group fell 30 percent as opposed to the median during that time.
Payrolls grew by 88,000 last month, which was the smallest increase since June, according to the Labor Department. Furthermore, the average hourly earnings were unchanged from March, which is the weakest showing since last October. Thus, even though recovery is underway, many low-income individuals are being left behind. As Bernanke has admitted, the economic recovery is truly not equal. [emphasis added]

As far as Republicans are concerned, now that the stock markets have recovered, the government stimulus has done its job and its time to move on to screwing the middle and working classes again.

Believe me, now that I am retired and living off my investments, I am doing just fine. My net worth has returned to the peak before the crash even though I am living off the dividends that these investments earn. So it is not my narrow self-interest that is at stake here.

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.