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Former U.S. Census Officials Gordon Green and Jack Coder on why average household incomes are declining despite economic recovery.
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Well officially that is the recession is over but as most people about the recovery in their response is what recovery.
A new report explains since the recession officially ended in June 2009.
The average households earning less than it did.
-- -- downturn itself.
So -- the recession is over wire income so drop.
With us now John cutter and Gordon Green.
Both former US census officials and offers of -- study welcome to you both.
We read this study with great interest and I have to tell you it was really shocking to me.
To see the destruction of in come -- American families.
That we've got a nice little full screen I think we might have just shown in about how in -- have fallen and they continue to plummet.
-- the recovery.
According to you would you look at these numbers.
Tell me why is this happening what's going on here what's causing this decline in income.
Well unemployment is the unemployment rate is still very high.
And the duration of unemployment is very high was He actually even increasing through the recovery.
And if you broaden the concept beyond the unemployed to look at people who are working part time for economic reasons.
Or marginalize workers sometimes called discourage workers if you put all three of those groups together it's up about 16%.
And so we saw a decline and real household income of six point 7%.
During the recovery that began in June June 2000 and I'll and when yet when you add that to the 3.2 percent -- time.
During the recession itself so if you compare.
December 2007.
To June 2009 in -- down by almost 10%.
That is a significant decline in the American Standard.
Well giant let me turn you now the kids I look at those numbers -- -- never seen that before is it unprecedented have -- seen that kind of all often an American income.
I don't certainly not in contemporary times but.
And we we have seen between 2000 this year because -- mid 2002010.
This past decade.
We did see a 7% decline over the decade.
One reason I think some.
People attorney in.
Call that the lost decade.
In now 2000.
Median household income was 53000.
Dollars and then in 2010.
It was 49500.
And since that time we've been.
We've been watching month by month.
The median household income -- -- up through August of this year.
And we find that the the median household income is fluctuating in a very in our range around.
49000.
-- 250.
At this at the same time.
Consumer prices are going up.
Buying months there's it seems like we re going on -- for Americans yeah that the prices of food.
What's happened with gas there's no doubt about it Americans are getting squeezed they have less money to spend.
And higher prices they -- when they get a -- restore anywhere else that's for darn sure.
Corn to yield you know I shall we talk about the fall off.
Again is an unprecedented and -- -- we've -- this happen for what are we looking at is this something that's gonna last for it another decade.
Two decades is this the new reality.
Well median household income typically -- a little bit when you get out of a recession but.
We're two years to four years right now from the end of this recession so a decline of six point 7% -- is really quite state.
And with the way prices are increasing its eating away.
And it people's real income and so I think the key is to get demand up if -- people start.
Purchasing more goods and services and companies are providing them and produced in and that's naturally -- to lead to an increase.
And hiring more people but basically -- I think we have to see some healing in the labor market before we can see -- we have.
A long way to go here I -- show some more of your results here which I think are really interesting.
Different segments everybody getting hit hard but you drill down into some of these segments and you see real pain here let's show some of those -- screens here.
This is average household in come in the unemployment rate.
I also want to look at when you look at people who are under 26.
African American single parents you know it the rates here.
Income -- down our shocking double digits in some cases.
I think.
We look at this -- and we think what's the way back do we have to have new industries come in.
Is it enough to have a strong recovery should this be the government stepping in.
If you look back at the history of how we create jobs in this country how does this problem gets solved.
Well Jerry if I had the -- inch again in Honolulu but.
I'm really not qualify -- Speculate on.
And economic.
Programs that might might work I think there's been.
A number of them propose there's been a number of number of them that.
Some folks they haven't worked.
I don't think anyone has it has.
A very good idea of of how we can get out of this.
That's great whether there's obviously no magic bullet -- we keep looking for right.
Gordon Jon thanks for conducting this study it was fascinating in a real eye opener for all of -- out there.
And I hope next time your report you have some good news -- thank you so much.
Thank you Jerry.
