A long, steep drop for Americans' standard of living

Not since at least 1960 has the US standard of living fallen so fast for so long. The average American has $1,315 less in ann al dis!osa"le income no# than at the onset of the $reat %ecession.

By Ron Scherer, Staff writer / October 19, 2011 at 9:44 am EDT Think ife i! not a! "oo# a! it $!e# to be, at ea!t in term! of yo$r wa et% &o$'# be ri"ht abo$t that( The !tan#ar# of i)in" for *merican! ha! fa en on"er an# more !tee+ y o)er the +a!t three year! than at any time !ince the ,S "o)ernment be"an recor#in" it fi)e #eca#e! a"o( Bottom ine: The a)era"e in#i)i#$a now ha! -1,.1/ e!! in #i!+o!ab e income than he or !he #i# three year! a"o at the on!et of the 0reat Rece!!ion 1 e)en tho$"h the rece!!ion en#e#, technica y !+eakin", in mi#22009( That mean! e!! money to !+en# at the !+a or the mo)ie!, e!! for )acation!, new car+etin" for the ho$!e, or #inner at a re!ta$rant( 3n !hort, it mean! a e!! )ibrant economy, with more *merican! !+en#in" +rimari y on nece!!itie!( The #imini!he# !tan#ar# of i)in", moreo)er, i! !4$ee5in" the mi## e c a!!, who!e re!t e!!ne!! an# #i!content are e)i#ent in "ra!!2root! mo)ement! !$ch a! the tea +arty an# 6Occ$+y 7a Street6 an# who may take o$t their fr$!tration! on inc$mbent +o itician! in ne8t year'! e ection( 7hat ha! e# to the mo!t #ramatic #ro+ in the ,S !tan#ar# of i)in" !ince at ea!t 1990% One factor i! !ta"nant income!: Rea me#ian income i! #own 9(: +ercent !ince the !tart of the rece!!ion thro$"h thi! ;$ne, accor#in" to Sentier Re!earch in *nna+o i!, <#(, citin" cen!$! b$rea$ #ata( *nother i! fa in" net worth 1 think abo$t the )a $e of yo$r home an#, if yo$ ha)e one, yo$r retirement +ortfo io( * thir# i! ri!in" con!$mer +rice!, with inf ation ero#in" +eo+ e'! b$yin" +ower by .(2/ +ercent !ince mi#2200:( 63n a #ynamic economy, one wo$ # e8+ect *merican!' #i!+o!ab e income to be "rowin", b$t it ha! f attene# o$t at a ow e)e ,6 !ay! economi!t Bob Br$!ca of =act > O+inion Economic! in ?ew &ork( To be !$re, the rece!!ion ha! hit $ne)en y, with ower2!ki e# an# e!!2e#$cate# *merican! fee in" the +inch the mo!t, !ay! <ark @an#i, chief economi!t for <oo#y'! Economy(com ba!e# in 7e!t Ahe!ter, Ba( <any fo$n# their Cob! "one for "oo# a! com+anie! mo)e# +ro#$ction off!hore or bo$"ht e4$i+ment that re+ ace# man+ower( 6The +ace of chan"e ha! been incre#ib y ra+i# an# incre#ib y to$"h on the e!! e#$cate#,6 !ay! <r( @an#i, who ca ! thi! +erio# the mo!t #iffic$ t for *merican

ho$!eho #! !ince the 19.0!( 63f yo$ #on't ha)e the e#$cation an# yo$ #on't ha)e the ri"ht !ki !, then yo$ are "ettin" creame#(6 Ber ca+ita #i!+o!a +er!ona income 1 a key in#icator of the !tan#ar# of i)in" 1 +eake# in the !+rin" of 200:, at -..,D94 Emea!$re# a! after2ta8 incomeF( *! of the !econ# 4$arter of 2011, it wa! -.2,4D9 1 a mo!t a 4 +ercent #ro+( 3f +er ca+ita #i!+o!ab e income ha# contin$e# to "row at it! norma +ace, it wo$ # ha)e been more than -.4,000 a year by now( The !o2ca e# mi!ery in#e8, another mea!$re of economic we 2bein" of *merican ho$!eho #!, echoe! the fin#in" on the ! i++in" !tan#ar# of i)in"( The in#e8, a combination of the $nem+ oyment rate an# inf ation, i! now at it! hi"he!t +oint !ince 19:., when the ,S economy wa! reco)erin" from a !hort rece!!ion an# from the ener"y +rice !+ike! after the 3ranian re)o $tion( 3n Roya Oak, <ich(, *#am Gowa know! e8act y how the !4$ee5e fee !( *fter o!in" a wareho$!e Cob in Han!in", he, hi! wife, an# their two chi #ren ha)e ha# itt e reco$r!e b$t to mo)e in with hi! mother( ?ow workin" at a !choo cafeteria, <r( Gowa earn! 2: +ercent e!! than at hi! a!t Cob( Ie an# hi! wife now eat o$t once a month in!tea# of once a week, #o no !ocia i5in", an# eat e!! e8+en!i)e foo#!, !$ch a! "ro$n# ch$ck in!tea# of "ro$n# !ir oin( 6<y mom wa! ho+in" her ki#! wo$ # ea# a better ife than her, b$t !o far that ha! not ha++ene#,6 !ay! Gowa ( 7ith #i!+o!ab e income! fa in", +erha+! it'! not !$r+ri!in" that 94 +ercent of *merican! worry that they won't be ab e to +ay their fami ie!' e8+en!e! at ea!t !ome of the time, accor#in" to a !$r)ey com+ ete# in mi#2Se+tember by the <ari!t 3n!tit$te for B$b ic O+inion( *mon" tho!e, one2thir# !ay their financia +rob em! are chronic( 67hat we !ee i! that )ery few are e!ca+in" the cr$nch,6 !ay! Hee <irin"off, #irector of the <ari!t 3n!tit$te in Bo$"hkee+!ie, ?(&( 3ncome o!! i! hittin" the mi## e c a!! har#, e!+ecia y in comm$nitie! where man$fact$rin" faci itie! ha)e c o!e#( 7hen tho!e Cob! are "one, many worker! ha)e en#e# $+ in !er)ice2!ector Cob! that +ay e!!( 6<aybe it'! the e)o $tion of the economy, b$t it a++ear! ar"e !e"ment! of the workforce ha)e mo)e# +ermanent y into ower2+ayin" +o!ition!,6 !ay! ;oe ?aroff of ?aroff Economic *#)i!or! in Io an#, Ba( 6The economy can't "row at 4 +ercent +er year when the mi## e c a!! become! the ower mi## e c a!!(6 Ie wo$ # "et no ar"$ment from ;eff Beatty of Richmon#, Gy(, who worke# in the 3T an# te ecomm$nication! b$!ine!!e! for mo!t of hi! career 1 $nti he hit a ro$"h +atch( Ie an# hi! wife are i)in" on hi! $nem+ oyment in!$rance benefit! Ewhich wi r$n o$t in month!F, hi! ear y Socia Sec$rity +ayment!, an# her #i!abi ity +ayment! from the Socia Sec$rity *#mini!tration( Their tota income come! to -.0,000 a year( 6O$r !tan#ar# of i)in" ha! +robab y #ec ine# threefo #,6 he !ay!(

<r( Beatty, who $!e# to make a comfortab e income, now antici+ate! a++ yin" for foo# !tam+!( Ie an# hi! wife ha)e !o # m$ch of their f$rnit$re, which they no on"er nee# beca$!e they ha)e mo)e# into a one2be#room a+artment owne# by hi! !i!ter2in2 aw( E)en +eo+ e with co e"e #e"ree! are fee in" the !4$ee5e( On a fa #ay, I$nter Ao e"e "ra#$ate an# Brook yn re!i#ent Ba$ Batti! came to ower <anhattan to check o$t the Occ$+y 7a Street +rote!t( Ie te ! one of the +rote!ter! that *merica'! +rob em i! the )ario$! free2tra#e +act! it ha! a++ro)e#( <r( Batti!'! an"!t o)er tra#e i! roote# in the fact that two year! a"o he o!t hi! #ata2entry Cob with a 7a Street firm that #eci#e# to o$t!o$rce !$ch Cob! to 3n#ia( 7hen he ha# the Cob, he ma#e a comfortab e income( ?ow hi! income i! !+ora#ic, from the occa!iona con!tr$ction Cob he an#!( Ie $!e# to b$y c othin" from <acy'! or other #e+artment !tore!( ?ow he "oe! to 0oo#wi or Sa )ation *rmy !tore!( Ie ha! e)en c$t back on takin" the city !$bway!, in!tea# ri#in" hi! bicyc e( Se+arate# from hi! wife an# hi! 1/2year2o # #a$"hter, he !ay!, 6Try makin" chi # !$++ort +ayment! when yo$ #on't ha)e a re"$ ar income( 3'm con!tant y catchin" $+(6 E)en recent y !ome *merican! co$ # ta+ the e4$ity in their home! or their !tock market acco$nt! to make $+ for any !hortfa ! in income( ?ot anymore( Since 200D, *merican!' co ecti)e net worth ha! fa en abo$t -/(/ tri ion, or more than :(9 +ercent, accor#in" to the =e#era Re!er)e( The b$ k of that #ec ine i! in rea e!tate, which ha! o!t -4(D tri ion in )a $e, or 22 +ercent, !ince 200D( 3n *ri5ona, for e8am+ e, more than ha f of homeowner! i)e in ho$!e! that are worth e!! than their +$rcha!e +rice!, accor#in" to !ome re+ort!( Stock in)e!tment! aren't any better( Since 1999, the Stan#ar# > Boor'! in#e8, on a +rice ba!i!, i! off 1D +ercent( 3t'! $+ .(2 +ercent when #i)i#en#! are inc $#e#, b$t that'! a !ma ret$rn for that en"th of time( 6Thi! i! rea y a o!t #eca#e of aff $ence,6 !ay! Sam Sto)a , chief in)e!tment !trate"i!t at Stan#ar# > Boor'! in ?ew &ork( *mon" tho!e who ha)e watche# their finance! #eteriorate are !enior citi5en!( 60i)en the !tock market, they are )ery ner)o$!,6 !ay! ?ancy Hea<on#, e8ec$ti)e )ice +re!i#ent at **RB, the !enior!' obbyin" "ro$+( 6They want to kee+ their !a)in"!(6 B$t <!( Hea<on# a !o note! that abo$t 2 in e)ery . !enior! are #e+en#ent not on 7a Street b$t on Socia Sec$rity( The a)era"e ann$a income for tho!e o)er 9/ i! -1:,/00 a year 1 a mo!t a of it from Socia Sec$rity, !he !ay!( 6Thi! i! not a +art of *merica that i! rich,6 !he !ay!( *t the !ame time, !enior! are "ettin" +inche# in their +ocketbook!( 6O$r member! are watchin" a the thin"! they ha)e to b$y, e!+ecia y hea th2care +ro#$ct!, "o $+ in +rice,6 !ay! Hea<on#(

3n Bom+ano, = a(, !ome !tretche# !enior! en# $+ at the B e!!in"! =oo# Bantry, which i! a!!ociate# with Ahri!t Ah$rch ,nite# <etho#i!t( 67e ha)e 4$ite a few "ran#+arent! who are rai!in" their "ran#chi #ren on a fi8e# income, fee#in" them an# b$yin" c othe! for them when they can't affor# to #o Jthat forK them!e )e!,6 !ay! &)onne 7omack, the team ea#er( Other!, !he !ay!, are for"oin" foo# to +ay for their me#ica +re!cri+tion!( 6*n# then there i! yo$r or#inary !enior who!e Socia Sec$rity JcheckK ha! not "one $+ in the a!t !e)era year!, b$t foo# an# "a!o ine J+rice!K ha)e !kyrockete#,6 !he !ay!( EIowe)er, Socia Sec$rity check! wi "o $+ .(9 +ercent in ;an$ary(F The B e!!in"!, !he note!, i! now fee#in" 42 +ercent more +eo+ e than a!t year( 67e a !o +ro)i#e foo# yo$ can eat o$t of a can,6 !he !ay!( 67e #o ha)e !enior! who are i)in" on the !treet!(6