It is painful as Presidents since Clinton have warned. In fact, the correction began as Clinton was leaving office. It got pumped up by Bush war spending and legalized tax evasion. Then, big government came to the rescue; however, the damsel cannot be saved.
America is in deflation mode because the economy is correcting to get on par with the rest of the world. When Americans are willing to perform work in parity with global averages, equal pay for equal work, then we are in a position to begin to improve, that is with the caveat that we rediscover how to design, engineer, and produce superior products for global consumers.
That is the game to win in our world today – produce the best products that people need everywhere.
“Household income plunged in 2009
Washington Post Staff Writer
Tuesday, September 28, 2010; 11:52 AM
Household incomes shrank for the second year in a row in 2009, as the recession eroded the share of American families earning over $100,000 and swelled the ranks of people who are poor or just barely making it, according to census statistics released Tuesday.
The income estimates from the American Community Survey, a wide array of census statistics reported annually, underscore the devastation the recession has caused to millions of American households and families.
Locally, however, the outlook was far less grim. Although the census said median household incomes dropped in virtually all Washington area jurisdictions, the share of wealthier households remained fairly stable or even increased.
Loudoun County, for example, is seemingly the land the recession forgot. The census said almost 58 percent of the county's households earned $100,000 or more, up from 53 percent in a continuous upswing during each of the past four years. At the same time, the number of households earning under $25,000 dropped from 7 percent to under 5 percent. The poverty rate of 3 percent has essentially remained unchanged.
Prince William showed the biggest jump in lower-income families. Almost 10 percent made less than $25,000 last year, up from 6 percent in 2006, and the poverty rate rose 1 percent. Simultaneously, however, the share of wealthier households increased, with 43 percent earning over $100,000 a year, compared with 41 percent in 2006. Median income also rose, perhaps suggesting the large number of foreclosures in the county had led to many residents moving away.
The District also continued a trend of rising incomes, reflecting the increase in younger, highly educated people and the prevalence of government jobs.
Nationally, the median income of $50,221 is down about 4 percent from its peak since the recession began in December of 2007. That year, median household income was $52,384. Last year alone was responsible for about $1,500 of that loss.
Almost one in five households had an income of $100,000 or more in 2009, the census reported. That was down almost a full percentage point from 2008. In contrast, almost one in four families earned less than $25,000, an increase of one percentage point.