Tags: Economists | US | Incomes | Rebound

Economists: US Incomes Won't Rebound for 10 Years

Friday, 14 Oct 2011 08:50 AM

Americans' incomes have dropped since 2000 and 50 economists surveyed by the Wall Street Journal don’t expect we will make up the lost ground before 2021.

"Standards of living in the U.S. will continue to decline as we deleverage and emerging markets take over as the growth engine of the global economy," Julia Coronado of BNP Paribas says.

Adjusted for inflation, median income in the United States dropped 7 percent from 2000 to 2010 according to Census data, making that decade the worst performing in records going back to 1967.

On average, the economists expect inflation-adjusted incomes to rise over the next decade, but the 5 percent projected gain isn't enough to reach pre-recession levels.

Moreover, though most of the 50 economists surveyed believe the current generation of college graduates — among whom unemployment is currently 4.2 percent, less than the 9.1 percent for the entire work force — will have a higher standard of living than their parents, a third of respondents believe it will be lower.

By itself, a college degree hasn't been enough to ensure wage gains from 2000 through 2010. According to Census Bureau data, only advanced degree holders managed to record increases in earnings over that period.

The economists surveyed expect economic growth for 2011 will be only 1.5 percent, 2.3 percent in 2012 and 2.7 percent for 2013, rates that are insufficient for bringing down the unemployment rate quickly.

On average, the economists expect the economy to add just 1.5 million jobs over the next 12 months, barely enough to keep up with population growth, and forecast the jobless rate will be at 8.2 percent at the end of 2013.

The Herald Sun reports that new jobless claims in the week to October 8 were 404,000, down from the revised figure of 405,000 for the previous week.

The weekly figure has been above 400,000 for most of the year, despite efforts by the government to rev up the economy and boost hiring.

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Americans' incomes have dropped since 2000 and 50 economists surveyed by the Wall Street Journal don t expect we will make up the lost ground before 2021. Standards of living in the U.S. will continue to decline as we deleverage and emerging markets take over as the...
Economists,US,Incomes,Rebound
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2011-50-14
Friday, 14 Oct 2011 08:50 AM
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