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The Wealthy in the Recession

Michael Linden and Heather Boushey from the Center for American Progress take a close look at the recently released census data, and find income inequality

Jul 31, 2020
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Michael Linden and Heather Boushey from the Center for American Progress take a close lookat the recently released census data, and find income inequalityincreasing through the recession:
Recently released Census dataconfirm that the wealthy are back on track after suffering only minor setbacks. Incomes fell across the board from 2007, before the recession began, to 2008. Everyone took a hit, from the poorest quintile to the richest. But that’s where the shared pain ends. From 2008 to 2009 almost everyone’s income continued to fall except the rich. The richest 5 percent of Americans saw their average income rise last year by $1,800.
Change in average household income, by quintile
Change in average household income, by quintile
Not so for those in the middle. Median household income continued to slide from 2008 to 2009, falling by $335. In fact, the median household has lost almost $2,200 in annual income since the recession began. That is the largest two-year decline in at least 35 years and amounts to a drop of more than 4 percent.
In short, only the top quintile of earners have gained anything in the past year. And the fourth quintile — those in the 60th to 80th percentiles, presumably mostly low-income earners who make too much for government assistance — have lost proportionately the most in the last two years.
Camilo Wood

Camilo Wood

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Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing. Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers. Camilo's experience includes working in roles related to financial reporting, analysis, and commentary, allowing him to provide readers with accurate and trustworthy information. His dedication to journalistic integrity and commitment to delivering high-quality content make him a trusted voice in the fields of finance and journalism.
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