Ten years after the recession, the heritage of the American middle class locks behind


First release:

Washington (AFP)

Even on average, average US real estate prices exceeded their level before the bubble burst in 2008, the middle-class odor often represented by housing, is still lagging behind. .

The Case Shiller Index – a real estate benchmark for the United States – recovered at the end of 2017, averaging the 2006 historic peak reaching subprime mortgages. Causing millions of foreclosures and the deepest recession over time.

After ten years later, despite the slowdown in rising house prices, the US middle-class scent has yet to return to its 2009 recession level. There. Central Bank (Fed).

"Middle-income families have not completely recovered the wealth lost during the Great Recession", said Friday Fed Governor Lael Brainard in Washington.

As the only Democrat on the board's board, appointed for the position of Obama administration, she echoed two new Central Bank surveys showing rising inequality and degrading the resources of the middle class.

"The wealth of the top 10% of households in the scales has increased by 19% since the recession" of 2009 ", even taking into account the recent decline in activity in 2018," she said.

On the other hand, the wealth of middle-income families has not recovered to its pre-crisis level. For low-income families, it is even lower by 16%, she said.

In the United States, owning his home, even while paying it on credit, is one of the privileges of the middle class.

But the net worth of the apartment (excluding credit still payable), which reached an average of $ 90,200 for middle-class households in 2005, is offset by two-thirds in 2011.

At the end of 2018, after several years of rising house prices, often reaching 5% per annum, the net worth is "still below its pre-recession level and barely above that of 1989," she said. Brainard.

– less owners –

As with the rate of ownership, it recorded 68% record in recent years against 74% in 2004.

At the same time, the share of the budget of a middle-class renter increased from 18% in 2007 to 25% in 2018.

While the ability to save, along with job security, is another quality of middle class, one-third of households say, according to a Fed Survey, they would have to borrow or sell something to pay. An unexpected $ 400 bill.

A third party, too, needs to have money on their credit card regularly.

In 2018, 1/4 of middle-income families also avoided going to the doctor for lack of funds.

Looking at the evolution of wealth over the past three years, the smokers of householders are now thirteen times of middle-class households, compared with seven times in 1989.

High-end households hold 57% of all US-based smokers in the United States, compared with 47% thirty years ago.

Over this period, the middle-class wealth grew by only 1% a year when the country's growth was 2.6%.

As a result, while more than 80 percent of middle-class children in the 1950's were assured more of their parents, only half of them would have more than their elders, Jerome Powell. President of the Fed, at a conference in Washington this week.

Yacking the data, a final release of the Washington Post and ABC News showed that six out of ten Americans felt the economic system was getting elite.

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