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A decade has passed since the investment bank Lehman Brothers collapsed and the economy sank into the Great Recession and into a foreclosure maelstrom. Even today, some Americans are still struggling to regain their footing.
The worst financial disaster since the Great Depression, the financial crisis has erased nearly $ 8 trillion from the stock market wealth and $ 6 trillion worth of housing. According to the St. Louis Federal Reserve, 10 million Americans have lost their homes.
Ten years later, many Americans still bear the scars of the crisis. Some have never found the wealth that they have lost on the stock market and in real estate. Others, plagued by job losses as the unemployment rate increased, may be working in new jobs, but are earning less than in 2008. Older Americans are working more and more. more beyond the age of retirement.
"Older Americans who have experienced this can now be faced with this idea:" I have to work longer, make other financial compromises, "said Emily Holbrook, Director of Personal Markets at Northwestern Mutual. For millennia, many of whom entered the job market during the crisis and its aftermath, it was "a turning point," she added.
True, many Americans enjoy more income and wealth than they did ten years ago. But they tend to belong to already-favored groups, such as high-income earners and Americans with college degrees. Owners of booming cities, such as San Francisco and New York, have also held up well, thanks to soaring housing prices.
However, large demographic groups are still catching up with their wealth and income, according to research. In some cases, these Americans have been left behind by labor market trends, which favor workers with higher levels of education.
The two generations who have recovered their lost wealth are Generation X, the group of Americans born between 1965 and 1980, and Generation Y, born between 1981 and 1996, according to the Pew Research Center. The median net worth of Generation X households is $ 84,200, one-third more than in 2007, according to research. Generation Y has more than doubled its wealth, reaching $ 12,300.
Generation X owners are the only group to have recovered the equity they lost in the crisis, and they also experienced a stronger recovery in their financial assets, Pew said. But another factor may come into play: this generation was entering the most productive years when the crisis hit, meaning that years of income growth were greater than those of older generations.
Here are five groups of Americans who have not fully recovered in the last 10 years.
Millennials
Although they have acquired wealth since the crisis, they are struggling to catch up on other fronts, such as income and debt. The millennial generation could become a "lost generation" in terms of wealth creation, the St. Louis Fed said in a recent report.
The accumulation of wealth for people born in the 1980s is about 34% lower than that of previous generations, which, according to the bank's economists, could be due to the high level of debt in relation to income.
Baby boomers
Wealth for baby boomers rises to $ 184,200, short of their pre-crisis wealth of $ 224,100, Pew found. Although the loss of Boomer's wealth was not as strong as that of Generation X, they did not bounce back, perhaps because the recession hit their 60s, leaving them less years to rebuild their wealth. Baby boomers were born between 1946 and 1964.
Silent generation
Likewise, the silent generation, Americans born between 1928 and 1945, still find their lost wealth. The median household wealth for this group is $ 253,800, down from $ 267,500 in 2007, Pew said.
Workers without a university degree
Despite the ongoing economic recovery, people without a college or high school diploma still have not recovered from the recession, according to a recent Hamilton Project report.
This is evidenced by the low level of employment of less educated workers. The employment rate of Americans with a graduate degree is about 73%, but it is only 55% for those who just have a high school diploma.
Low income Americans
A poll from the Transamerica Center, released earlier this year, reveals that one-third of Americans whose household income is less than $ 50,000 – or less than that of the United States – have not started yet. recover or never recover from the shock of the financial crisis.
In comparison, only 12% of workers with incomes over $ 100,000 said they felt it.
The annual income of the poorest households – those in the bottom 10 percentile – is actually lower than it was ten years ago, according to data released this week by the census.
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