A huge majority of respondents in the latest Money Examiners poll said they are bringing less money home than just 10 years ago.
The online opinion poll found that 67% of those surveyed in just the past two weeks are making less money working at their jobs.
Only one out of three said they were making more money than a decade ago. The survey confirms a trend that has long been reported, which is that wages for U.S. employees have not gone up on average in the past 30 years.
Huge Majority Bring Home Less Money
Jobs that have been out-sourced overseas and automation in many industries, including the auto business with the advanced use of robots have cut the number of workers on assembly lines and in other workplaces.
The nation’s unemployment problem remains critical, and rose last month when it was reported to average 7.9% by the U.S. government.
Getting employers to hire more workers is a major theme of the Obama administration, but with a weak economy it may be difficult to develop.
Money Examiners regularly surveys visitors to its website on important issues related to the economy to give consumers a better understanding of the issues that face them on a daily basis.
Exclusive Poll Details US Economic Recovery
Almost two out of three respondents to a new Money Examiners poll feel that it will take at least 4 more years for the U.S. to recover from the financial crisis. In fact, some 40% say it will take 6 more years or longer.
The findings from the online poll detail just how messed up Americans feel the economy is after Wall Street traders sold trillions of dollars of Collateralized Debt Obligations (CDOs) as securities to back up mortgages. Only 13% said it would take a year to recover, with 17% saying two years. The poll was just completed late Monday.
Efforts by the Federal Reserve to stimulate the economy purchasing billions of dollars in mortgage-backed securities and keeping interest rates it charges banks to borrow money at or near zero have pushed the economy forward, including a massive rally on Wall Street. The New York Stock Exchange hit record levels before declining two weeks ago.
However, the troubled U.S. economy will need to see greater growth and stronger employment before a healthy economic recovery will have any significant impact.
Pushed by near record low mortgage rates, home prices in most regions of the country are improving but have done little to improve the situation on home prices millions of home buyers paid during the height of the real estate bubble.
Housing prices may never reach the high levels seen in many regions of the country during the boom, including many of the hardest hit markets like Las Vegas, Los Angeles and many areas in Florida.
That is because the high prices reached in many of the highest priced cities were artificially manipulated by a combination of factors, including the loosest lending practices ever implemented by banks and widespread fraud.
Congress has implemented a series of changes with the Dodd-Frank Act. But few real changes have been finalized to be implemented as many of the practices that triggered the financial crisis on Wall Street continue to be carried out daily.
And many veteran financial experts expect a second financial crisis to develop similar to the first crisis experienced almost six years ago.
62% Say They Don’t Feel Any Richer
A large majority don’t feel any richer than they did seven years ago, despite an improving economy, according to a new consumer survey.
Almost two out of three polled aren’t feeling any richer at all, a MoneyExaminers.com poll found. Some 62% said they do not feel richer than seven years ago when the U.S. real estate market crashed.
Home prices in the majority of the country are improving, but with high unemployment and other issues troubling the economy the large majority of Americans aren’t feeling much better about their economic well-being.
The poll asked respondents about a well recognized issue when it comes to consumer sentiment regarding the economy– the Wealth Effect.
Psychologists say the Wealth Effect impacts the way people feel about their own economic circumstances.
If people have doubts about the U.S. economy it may be reflected in the way they feel about their own circumstances.
When people feel better about the economy, consumers are more likely to make major purchases like homes and large consumer goods like cars, dishwashers, washers and dryers and other large appliances.
Conversely, when they feel negative about the economy consumers rarely make major purchases, and only buy expensive items when they are forced to.
Auto retailers that specialize in car parts like Auto Zone have seen their stock prices soar on the heels of negative consumer sentiment since consumers have been buying car parts in mass to make repairs on their cars more commonly instead of buying new automobiles.
The remaining 38% surveyed said they feel richer than they did seven years ago. Job stability and confidence in consumer economic well being run hand-in-hand. The U.S.unemployment average fell to 7.7% last week, the Commerce Department said.
The improving trend should eventually aid the U.S. housing market, which is trying to recover from its toughest decline since the Great Depression.
Almost a third of all homeowners with a mortgage were underwater on their homes slightly more than a year ago, but with improving home values only about 26% are currently upside down on their mortgages.
Government programs instituted to stimulate home buying and increase prices are likely to improve that percentage in the coming months.
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