Next Federal Reserve Report Paints Gloomy Economic Picture

Statement

By:  Jack Kingston
Date: June 15, 2012
Location: Washington, DC

Do you remember the last time the Washington Redskins won the super bowl? If you're mature enough to recall Joe Gibbs hoisting the Lombardi trophy in 1992, then you will also call to mind the unhealthy unemployment rates, struggling economic growth, and inflationary measures continually on the rise. It would be another 20 years until this great country of ours would endure a national net income as tragically low as when I was two years old.

In the most recent Survey of Consumer Finances, the Federal Reserve found that the average family's net worth plummeted 40% between 2007 and 2010.

If President Obama really believes "the private sector is doing fine," his idea of fine would be 1992. According to this report, the recession unfortunately erased over 18 years of savings and family investments. Within the same three year span, the median homeowner endured an average of $70,000 losses, which can mainly be attributed to the sharp decreased value of housing. Along with declining real estate worth, a little more than one out of ten of Americans are 60 or more days behind on credit card or other debt payments. The graph on the right indicates the substantial difference between the net worth in the first seven years of the new millennium, compared to the final three.

Add to this devastating report the fact that 53 percent of college graduates this year will be either jobless or underemployed.
It's an unfortunate time for everyone: college graduates, tax-paying Americans, and Redskins fans alike. Maybe it's time for President Obama and Senate Democrats to start looking at the more than thirty jobs bills passed by the House.