UPDATE – Dean Baker takes issue, saying the report is “misleading.” He agrees the situation is bad – heck, he’s been a major source of data and commentary on how bad it has been – but notes there is no information on the methodology employed by the authors.
A new analysis of Census data shows that, even after the Recession/Depression was “over” – June, 2009 – median incomes dropped significantly.
Between December, 2007, when economists agree the Recession/Depression began, and June, 2009, when it “ended,” median household income declined by 3.2 percent, following the trend that had been developing for much of the “oughts.” But after June, 2009, as the markets recovered and corporations became wonderfully profitable, that number feel more than twice as fast. Between June, 2009 to June, 2011, median incomes dropped 6.7 percent.
According to the authors (former Census officials), A decline of this magnitude represents a significant reduction in the American standard of living.
Here’s the press release from Sentier Research (the report will cost you $20) – Read it and weep – or get very angry
Meanwhile, more data on the scope of income inequality. The ratio of CEO pay to that of the average worker is now in the neighborhood of 475:1. In Japan, it’s 11:1. Germany, 12:1.