Home » Taxes, Spending, Debt and Waste » Fed: Recession Kicked Median Household Wealth To 1992 Level

Fed: Recession Kicked Median Household Wealth To 1992 Level

20 years of wealth.

via: USAToday

The median U.S. household lost nearly 39% of its wealth from 2007 to 2010, the Federal Reserve said Monday, emphasizing anew the impact of the financial crisis and the recession on ordinary Americans.

Middle-class families took the biggest hit to their net worth during the crunch because much of their wealth was in their homes, whose values plunged during the recession and in its aftermath, the Fed report said. Wealthier families saw a smaller drop in their incomes, but nowhere near as much impact on their net worth.

Median incomes among the richest 10% of Americans fell 5.3%, compared with 7.7% for all Americans. The median net worth of the wealthiest 10% actually rose. The median is the point where half are above and half below.

Overall, median household net worth slid to 1992 levels after adjusting for inflation, wiping out the gains of the late-1990s Internet boom and the post-2000 housing surge, the Fed said.

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