By YUVAL ROSENBERG, The Fiscal Times:
Median household incomes adjusted for inflation fell 1.5 percent to $50,054. That’s 8.1 percent lower than it had been in 2007, the year before the recession, and almost 9 percent lower than the peak income level reached in 1999. The last time median household income was lower was 1995 – meaning it’s been a lost decade and a half for Americans looking to get ahead.
The gross domestic product has gone from $7.4 trillion to $15.1 trillion in current-dollar terms over that time, suggesting that families have fallen behind even as the economy has expanded.
via Household Income Falls to Lowest Point Since 1995.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.
and that is precisely the problem. The US economy will only achieve a sustained turn around when there is real growth in wages. The reason is that the US economy is 70% consumer driven and as long as household’s share of the cake keeps falling government will have to step in and fill the gap with borrowing to keep the economy ticking over.
Agreed