This Week's Forecasts & Trends E-Letter
90% Of Americans Are Worse Off Today Than In 1970s
May 3, 2016
Today we will focus on a recent study from the Levy Economics Institute which found that 90% of Americans were worse off financially in 2015 than at any time since the early 1970s. Furthermore, for the vast majority of Americans, the nation’s economy is in a prolonged period of stagnation, worse even than that of Japan.
So are we really worse off today than Japan? This latest study concludes that the answer is YES, when it comes to real income – that is, income adjusted for inflation. According to their findings, 90% of Americans earn roughly the same real income today as the average American earned back in the early 1970s. It’s an eye-opening look at how the vast majority of Americans are struggling to make ends meet.
Before we get to that discussion, let’s take a look at last Thursday’s disappointing report on 1Q Gross Domestic Product. We will round-out today’s E-Letter with some interesting polling data from Rasmussen, which suggests that up to 24% of American voters may not vote for Donald Trump or Hillary Clinton and may just stay home on Election Day if they are the nominees. Wow!