Obama’s Economy: Americans’ Net Worth ‘Continues To Decline’
'Household net worth continues to decline'
| Albert Merrick |
A new economic scorecard shows that, while media outlets continue to refer to the economy as “improving,” key indicators are actually trending the opposite direction.
The new report by the Corporation for Enterprise Development, an advocacy group for “expanding economic development” showed that, five years into the Obama administration, the average American’s economic outlook continues to worsen:
The percentage of households in the US who lack the savings needed to weather a financial storm like a job loss or medical emergency is holding tight at 44%, suggesting that almost half of Americans are on the brink of financial calamity. The Scorecard also found that problems like growing student loan debt and high rates of consumers with subprime credit—especially among households of color—are to blame for Americans’ lingering inability to get ahead and build a more secure financial future for themselves and their families.
During this afternoon’s launch webinar, CFED President Andrea Levere called listeners’ attention to the fact that despite 50 years of progress in the War on Poverty, Americans’ economic mobility has stagnated, while household net worth continues to decline. Part of why these measures trend the wrong direction, Andrea noted, is the intergenerational transfer of wealth and the lack of policies in place to give a hand up to those who need it the most. Too often, the family or the ZIP code into which you are born determines your chances to get ahead, and America’s opportunity agenda needs to reverse this trend. Armed with the right data, advocates can ensure that income quintiles aren’t permanent conditions, and that Americans can move up the economic ladder.