Economic Recovery - But For Who? - News Today in World

Economic Recovery - But For Who?

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Title : Economic Recovery - But For Who?
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news-today.world | How to judge the effectiveness of the economic recovery since 2008 is a challenge?

Many laud the Federal Reserve for it's actions to stave off a possible depression. The Federal Reserve's policies have certainly helped to promote new record highs in financial assets across the spectrum. These policies have resulted in a great rise in household net worth yet has created the fewest net new full time jobs and real income increases since WWII. The chart below shows the household net worth (the combined valuation of all privately held stock, real estate, bonds, etc.) as a percentage of disposable income (what is left after paying taxes) and calls out the decelerating full time job creation.

But as Ray Dalio noted yesterday HERE, the recovery is only a recovery for the wealthy. As the chart below from the Fed's own Survey of Consumer Finances shows, all the record growth in household net worth has gone to the top 20% of income earners since 2007 while the remainder have seen declining net worth.

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