Federal Reserve Report Reveals Americans’ Dramatic Loss of Wealth Resulting from Financial Meltdown
Interview with William K. Black, associate professor of economics and law at the University of Missouri, Kansas City, Mo., conducted by Scott Harris
While the Occupy Wall Street movement’s emergence in New York City and around the country last fall focused attention and debate on the nation’s growing income inequality over recent decades, a new report by the Federal Reserve reveals stark evidence of the economic damage caused by the economic meltdown. The Federal Reserve report found that from 2007 to 2010, the median net worth of American families dropped by 39 percent, bringing the levels of household wealth down to levels last seen in 1992. The dramatic decline in family wealth wiped out almost 20 years of accumulated savings and investments. As calculated by the Fed, an American family’s median wealth decreased from 6,000 in 2007 to just ,300 in 2010.