We’ve got good news, folks: Unemployment is at a near historic low right now. We’re riding that wave that started during the Obama years, and rich investors everywhere are thriving. We’ve also got some bad news. A new study by the Federal Reserve Bank of San Francisco put a dollar amount on what we lost to the 2008 financial crisis. Because the U.S. economy today is “well below” what pre-crisis trends predicted it would be, every American is out $70,000 on average.
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Happy 10-year anniversary of the housing crash, the start of the Great Recession, and the death of the American dream, y’all.
The authors of the study wrote that a possible reason for our smaller than desirable economy is the hits the crisis dealt to our GDP. We’re still suffering from those today. “The size of those losses suggests that the level of output is unlikely to revert to its pre-crisis trend level,” the authors wrote. They also added that policymakers are “rightfully worried” about our stunted economic growth.
This estimate is yet another depressing financial stat to affect average Americans. Real wage levels (which take into account inflation and spending power) are almost exactly the same as they were back in 1978. Americans born in the ’80s carry the most debt of any generation. And almost a quarter of Americans have no emergency savings stashed away.
A spare $70,000 could come in handy right about now. Heck, so would $20.