Clearly, there are a lot of people who feel that the economic recovery–over five years old by now, at least by the official count–isn’t reaching them. That’s a central result from a pretty gloomy poll out today from Rutgers University.
I put some thoughts and data together over at PostEverything, showing the gaps between real GDP growth, corporate profitability, the stock market, and middle-class household incomes. As you see, the disconnect kinda jumps out attcha.
Sources: BEA, Standard and Poors, Sentier Research.
As noted in the WaPo piece, I was struck by this poll result:
You never want to read too much into one poll, but OTEers will recall that this comports with recent economic findings that show precisely this phenomenon: the Great Recession did in fact do very significant damage to growth rates across the globe. One study by Larry Ball that I wrote up a few weeks ago found that the loss of potential output in the U.S. amounted to $7,500 per household.
As I’ve noted elsewhere, I think some of the damage can be repaired, but it will takes numerous years at full employment if that is to happen.