Recession Shrank Net Worth of U.S. Families 40% to 1992 Levels
If your wallet feels a leaner before you venture to buy the latest video game or album, rest assured you are hardly the cause. It’s the economy. New figures show the recession brought on by the 2007 financial crisis has wiped out two decades of wealth for the average U.S. household. According to the Federal Reserve, the median U.S. family’s net worth declined nearly 40 percent by 2010 to $77,300, roughly the same level it was in 1992. Middle-income families saw the largest decline in wealth. The collapse of the housing market and Republican obstructionism have played a key role, with home values dropping 42 percent between 2007 and 2010.