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Great Recession Cost Each Household Between $50,000 And $120,000, According To Dallas Fed Study

Tuesday, September 10, 2013 - 12:22 PM
From MarketWatch: 
The Great Recession cost each household between $50,000 and $120,000, or the equivalent of 40% to 90% of one year’s economic output, according to a study released by the Dallas Fed. In total, that represents an output loss of $6 trillion to $14 trillion.

That’s a combination of lost wealth (like the lost value of a house) and a drop in both current wage income and discounted future wage income from unemployment. Plus, the Dallas Fed notes, there are harder-to-measure consequence of extended unemployment, reduced opportunity and increased government presence in the economy.

And if output doesn’t ever return to trend, the crisis cost will exceed the $14 trillion high-end estimate of output loss.

 

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8
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
1. Tuesday, September 10, 2013 - 12:49 PM
Know that the world has taken a tow. Graduates, families on up to retirees are in trouble. I know I don't want to see anyone go through this again. GREED, POWER, RELIGION AND OIL causes so much of the evil in this world. At least we retirees have our SS to keep us afloat. We also have Ken to help us with our savings to hlep out of this. Been watching Frontline programs 

Money, Power and Wall Street | FRONTLINE | PBS 
3
AllyAlly786 posts since
Jan 16, 2010
Rep Points: 2,283
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