Tags: Economic | recovery | stocks | crisis

CNNMoney: Most Americans Feel No Economic Recovery

By    |   Monday, 02 June 2014 12:17 PM

It's now five years since the Great Recession ended, but most Americans feel the economic recovery has passed them by, according to CNNMoney.

"The labor market is the scar on the economy that remains from the Great Recession, the financial and housing crises. It may be fading, but it is still clearly visible and will remain for years to come," Sean Snaith, economics professor at the University of Central Florida, tells CNNMoney.

Americans are suffering from stagnant wages, many home values remain underwater and more Americans than ever are using food stamps.

Editor’s Note:
Pastor Explains His Biblical Money Code for Investing


Gains most benefit those at the top.

Although the stock market has hit record highs, only about half of Americans own stocks and most of those who do own small amounts. The wealthiest 1 percent took in about 95 percent of the income gains the first three years of the recovery, CNNMoney notes, citing economists Thomas Piketty and Emmanuel Saez.

Those in the middle hold most of their wealth in their homes, and home values have yet to return to peak values.

"It is not surprising that many people feel the economy is not in good shape," says James Smith, chief economist for Parsec Financial. "Their incomes are less than in 2007 or the value of their house is much less than then."

In fact, every American earns approximately $4,700 a year less than they would have been if the economy had not gone into recession, Lawrence Yun, chief economist for the National Association of Realtors, notes.

"We still have a large gap," Yun tells CNNMoney. "After a recession, generally in order to make up for the downfall, the economy should be rising 4 percent to 5 percent per year." However, the U.S. economy has been growing closer to 2 percent a year.

A new Gallup poll shows Americans continue to hold a lackluster view of the economy.

For the week ended May 25, 20 percent of those surveyed rated the current economy "excellent" or "good," while 34 percent called it "poor," resulting in a current conditions score of -14. Forty percent said the economy is improving, while 55 said it's getting worse, yielding an economic outlook score of -15.

Those views have changed little during the last couple months, as views of overall economic confidence shows no signs of significant improvement, according to Gallup. Economic confidence has actually gotten worse since last May.

"As Gallup has noted for some time, Americans may be looking for bigger signals than stock market gains or minor monthly improvements in the job market that the economy has truly recovered."

Editor’s Note: Pastor Explains His Biblical Money Code for Investing

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Economy
It's now five years since the Great Recession ended, but most Americans feel the economic recovery has passed them by, according to CNNMoney.
Economic, recovery, stocks, crisis
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2014-17-02
Monday, 02 June 2014 12:17 PM
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