Since the stock market fell in 2008, there has been constant talk about how the economy is suffering and the modern American family is no longer living as comfortably as it once did. Reports about how high the unemployment rate is are coming out every month without fail. Budget cuts and layoffs have been front-page news for more than the last two years.
Now, a new report has come out about just how bad Americans are hurting because of the economic crisis.
The report, issued by the United States Federal Reserve, makes the determination that in the time spanning between 2007 and 2009, before and after the stock market crash, the average net worth of the average family in the United States dropped 23%.
The statistics come from two surveys given in both 2007 and 2009. In 2007, the average American home had a net worth of $125,000. However, in 2009 the survey revealed that the statistic drastically fell to $96,000 on average.
In addition, the average stock portfolio fell from $18,500 to $12,000 for many Americans, crushing their financial stability.
Another statistic that brings to light the tragic aftermath of the stock market crash is the rise in average household debt by $5,300 and the fall in average household income by $300.
One intriguing statistic that the report mentioned was that whereas households that were higher than the national average when the survey was conducted in 2007 lost money come 2009, those who were below the average in 2007 improved their financial situations.
While the two-year span treated some families poorly, a good portion of Americans did enjoy financial growth in the 24 months.
But the fact that on average the American family is hurting badly is not something to be ignored.
With everything that has been going on with the unemployment rate over the course of the last year, it is very likely that while some Americans are doing much better, there are plenty who are probably in even worse conditions now.
The hope is that in due time the economic condition in America will improve to the point where not only are families having an increased net worth, but also where they have bigger and better hopes with every coming year.
It is nothing more than a wait and see now. The economy is essentially in a long-term recovery phase and it will definitely take time to see if recovery is possible.