Monday, December 12, 2011
Money, Frozen (graphic: All Reverse Mortgage Company)
The net worth of Americans suffered a blow over the summer, when the collective value of their properties and assets declined 4% to $57.4 trillion ($498,751 per household). The drop was the worst since the middle of the financial crisis in September 2008. Americans’ net worth also declined during the spring, leaving economists anticipating the final numbers for 2011’s fourth quarter to see if the trend continues for a third straight period.
In 2010, the median household income was $49,445, a 7% drop since 2000.
While the nation’s populace has seen its wealth diminish, corporations continue to stockpile cash. As of September 30, non-financial businesses were sitting atop $2.1 trillion, a record amount. Their unwillingness to invest has been a major reason why the unemployment rate, currently at 8.6%, had consistently hovered above 9% for more than two years.
-Noel Brinkerhoff
Americans' Net Worth Plummets as Corporations Stockpile Cash (by Derek Kravitz and Dave Carpenter, Associated Press)
A Tightening Squeeze: The Declining Expenditures on Food by American Households (Food Research and Action Center) (pdf)
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