The government's numbers - primarily the monthly data on unemployment and inflation - tell the story of a slow but gradual recovery by the U.S. economy.
But the experience of millions of Americans tells a far different story.
According to a new national survey conducted by the John J. Heldrich Center for Workforce Development at Rutgers University, many Americans continue to suffer from the impact of the Great Recession.
What's more, more than half of those surveyed believe the U.S. economy will not fully recover for another six years, and nearly one-third said the U.S. economy will never fully recover.
"Millions of households were affected to some extent by the layoffs that occurred four years ago," Mark Szeltner, the lead researcher for the Rutgers survey, told The Daily Ticker.
The Rutgers survey backs up what some other surveys have said.
Last August, in a Pew Research survey of middle-class Americans, 42% said they were worse off than they were in 2008.
A Rasmussen survey taken earlier this month showed that only 39% believed the U.S. economy would be stronger in five years - the first time, Rasmussen said, that figure had ever dipped below 40%.
U.S. Economy 2013: Rhetoric and Realities
The survey results contradict the sunny rhetoric from the party in power in Washington.
For the past couple of years, Democratic lawmakers and U.S. President Barack Obama have pointed to a slowly dropping unemployment rate and gradually improving housing data as evidence the U.S. economy was on the mend, if not back to its pre-2008 form.
"Our economy right now is headed in the right direction and it will stay that way as long as there aren't any more self-inflicted wounds coming out of Washington," President Obama told reporters last week as he urged Congress to act to avoid the economically damaging budget cuts set to hit March 1.
And just going by the government data, the U.S. economy is better off than it was in 2009.
Unemployment is at 7.9%, down from its peak of 10%. The gross domestic product (GDP) grew 2.1% in 2012, while it shrank 3.5% in 2009.
Unfortunately, the improving government data hasn't done much to help many middle-class Americans recover from the worst setback to the U.S. economy since the Great Depression.
The Rutgers survey of nearly 1,100 Americans showed just how deeply felt the Great Recession has been.
Nearly a quarter, 23%, said they lost their job as a result of the recession. Nearly three in four - 73% -- said they had either lost a job themselves, had a family member lose a job or had a close friend lose a job.
While most of those who were laid off said they had found new jobs, only a minority found jobs comparable to the ones they lost.
More than half (54%) said their new job paid less than their old one, and in many cases the pay cuts were steep. More than a quarter (26%) of those who took pay cuts lost between 31% and 50% and 18% lost between 21% and 30% of their former salaries.
"[That] can be a huge hit for middle-class Americans," Szeltner said.
Equally demoralizing is that many of the "recovery jobs" carried a lower status. Almost half (48%) said their new job was a "step down" for them.
And people are pessimistic about any real improvement to the unemployment picture, mirroring how they feel about the U.S. economy in general.
An astonishing 90% said they were either "somewhat concerned" or "very concerned" about the job market for those now looking for work, and 85% said were somewhat concerned or very concerned about their own job security.
And the survey showed many feel this is the new normal; 60% said the changes to the U.S. economy are permanent.
Large numbers said they believed many things are gone for good: workers feeling secure in their jobs (43%); the availability of good jobs at good pay for those who want to work (34%); and a lower unemployment rate (29%).
Great Recession Impact on U.S. Families
The survey also revealed some of the hardships suffered by U.S. families in the wake of the Great Recession.
More than one-third (35%) said the recession has had a "major" impact on their family; only 14% said it has had no impact.
Some of the ways diminished economic circumstances have affected Americans, especially those who lost their jobs, include:
- 66% dipped into savings set aside for other things;
- 57% cut back on doctor's visits or medical treatment;
- 40% borrowed money from friends or family;
- 37% increased credit card debt.
Most of those who were laid off - 61% - believe their finances will never recover.
"I think the data speaks to the scope, the magnitude and the persistence of the recession," Szeltner said. "It's a really depressing image of what's happening right now to many Americans."
How about you? Do you think the official U.S. government statistics are masking serious issues with the U.S. economy? Tell us what you think in the comments section below.
Related Articles and News:
-
Money Morning:
Middle-Class Decline Under Obama Shown in 5 Charts -
Money Morning:
Steak, Hamburger and Dog Food: How the Government Lies About the Real Inflation Rate -
Pew Research:
The Lost Decade of the Middle Class -
The Daily Ticker:
The Economy Is Much Worse Than the Data Show -
The Rutgers Survey:
Diminished Lives and Futures: A Portrait of America in the Great-Recession Era (PDF) -
Rasmussen Reports:
New Low: 39% Expect Stronger Economy Five Years From Now
EVERY home in my "planned community" is in NEGATIVE EQUITY. One fifth of them are in foreclosure! In 2004 I had three $5000 CDs now I have none! My "savings" went from several thousand to less than several hundred.
At 69 my Credit Rating was at a consistent AAA rating for over 40 years. THIS MONTH I WILL PUT TOGETHER ENOUGH TO PAY FOR A BANKRUPTCY FILING! I cannot list how many people I know have filed, are filing or are saving to afford to file bankruptcy!
Do I think things are "getting better" well, let me ask you which alternate reality you are talking about?!
I feel as though,how can you tell when a politician is lying ?The answer is -everytime they open their mouths.I think we are being told bull crap.If you look,the economy is not getting better.Prices of everything is getting more expensive.A sign that the dollar is worth less and less because it takes more of them to buy the same things
Fortunately, i retired before the GR, but lost a lot ($$$,$$$) in my 401K which is very far from recovering and likely never will. I have a friend who worked for the same company and after 25+ years of service was laid off and is still cutting neighbor's lawns to get by. He lost his medical coverage, 401K gains and potential for a better pension. So much for the recovery. The unemployment numbers provide a phony representation of the true unemployment and underemployment misery suffered under the Obama reign. The labor participation rate provides a more meaningful and dismal representation of the US jobless woes.
There is segment of society that are mentioned in the above article. They are the ones that are not feeling the pinch and have not been affected. They are public employees who are all union workers. They represent city, county, state, and federal employees. The other entity is also union workers in the private sector. They have even gone on strike to receive pay increases and benefit increases. To do so in this economy is absolutely shameful. One cannot argue with the statistics mentioned above, but I can promise you that this comment will cause much discomfort and gnashing of teeth by anyone belonging to a union. Cities, counties, and even states on the verge of bankruptcy because of taxpayer supported public sector union employees. Until that issue is addressed, budget deficits will continue.
Time to eat s*** with the chickens
"Let them eat breakfast buns"
Awww, the poor little "moochers" and "takers" crying again! I wonder how many of you cryers were so quick to spew these kinds of "Chunks of Stupid" when the shoe was on the other foot?
Reading my hometown paper, I got excited reading the headline, "Employers seek out 80 new workers." I read on and my mind was racing. I was thinking, "Was an opportunity finally coming out of Career Central?"
Then I got to the line, "To qualify, an applicant's household income in the last 30 days must be below 200 percent of the poverty level and must have a dependent child under 18 years old living in the household." My heart sank and that familiar feeling of being excluded came roaring back. I iterated a few expletives, hoping it would somehow make me feel better; it didn't.
You see, I don't have a child. I admit that is a choice I made for myself. My parents brought me up believing that one shouldn't marry until one can support a spouse, much less bring a child into this world.
Though I was more qualified and experienced, I have been past over on promotions a number of occasions because of racial and gender quotas. I have been denied employment because I am unmarried and haven't any children.
I have been terminated from jobs for the same reason, though it never got reported as such in an attempt to avoid paying unemployment. But I do remember being constantly reminded, "The other guy or gal needs their job because they have a family to support."
I'm doing my part. I want to work; but when employers in the business community started telling me, "You don't have any children, what do you need a job for? There are families out there that are suffering; they need their jobs more than you do!"
I and many like me get the message, both government and the business community believe that we are not very important at best, or worst case, economically expendable.
When I do work, I have to watch what I say. Anything I say might be offensive that could lead to my termination. I am singled out and forced to pay higher income taxes than anyone else because I can't claim anyone other than myself. I am ineligible for Earned Income Tax credits (EIC) and child tax credits, that others are entitled to, whether or not they even worked! People getting tax returns that didn't even pay anything in; is that fair?
Because today's parents need my tax dollars to help them support their children, I consider them deadbeats – no matter how loving, caring or the quality of the home environment they provide.
When I was in business I was put at the back of the line when bidding for government jobs and contracts because women and minorities get priority.
We are good enough to pay for schools we do not have children to send to, and provide them free health care, breakfasts and lunches, too. Our income taxes go to pay for child tax credits and earned income credits, while we are denied claiming these children as dependents ourselves.
Then, when times get tough and government seizing a good portion of our income isn't enough, they take our jobs, too! We are expected to just get out of the way and make room for them because they need the jobs more. Since we don't really need them, we are always the first fired and the last hired. And we don't have an advocacy group to protect us.
The law doesn't even recognize it as discrimination, but what else can one call it? Being a male Caucasian, I don't have an NAACP, ACLU, NOW or a Spanish-American club that I can go cry to.
You see, because I am a white man, I am an evil, vile and a horrible person. Because I am white, I should feel ashamed because my family were once slave owners even though the earliest anyone in my family arrived in America was 1870.
If everything were reversed and white men had the upper hand, it would rightly be considered regressive and called what it is — racist and sexist. The way it is now though, it's been relabeled as being progressive providing preferential treatment and prioritized for advancing minorities and women.
Because I am demonized by likes of Al Sharpton, Jesse Jackson, Louis Farakhan and Marian Endelman. I am made to feel that I'm being held back and punished for the color of my skin, my gender and marital status.
After we are forced to fall on the sword and lose our jobs for the common good known as, "It's for the children," our fellow countrymen then show their gratitude by calling us lazy. We are told that we would rather suck from the public trough, collecting welfare and food stamps, than do an honest day's work.
Sometimes I feel like the only fire hydrant in the whole world full of big dogs.
@ Lorne DeWitt… Everyone is going through a hard time. You are exactly the hypocritical person who will tell everyone else to "take accountability" but you yourself don't. You can tell by the language you use that you are weak minded. "I am being made to feel….". Your mentality is poor and narrow because you already had biases against others. You are the type of guy who has trouble with women and always will because women don't want men who complain like you do. It's not because "you're waiting"; it's because you are depressing and no one wants you. The simple fact is that whites still far outpace minorities financially. Men still make more than women. I can understand that even white guys are struggling in this economy too. But, if you think anyone wants to sit up and hear you complain, you got a long life ahead of you.
Hey buddy guess what, i know a few women that are highly qualified- have advanced technical degrees- and proven their worth far and beyond the duty of call and at a pay that you would probably scoff at, are single themselves (and hear the, "you dont need a job, you dont have a kid" or "no husband? go and get a husband, you dont need a job!" garbage) and cant find work! The cherry on the top? When they had the privilege of working in their "awesome" field, were getting paid as much as a cosmetician at a makeup counter, working 10 hour days making their bosses look good, while the men (of all races) were being paid hefty salaries so they could buy that shiny new bmw and nice house by the lake, while they just had enough to pay the bills if they were lucky! you feel better now?
I'm a male minority from an upper middle class family who has probably paid far more in taxes than yours did in a similar situation. I would have gotten behind your cause but you're busy blaming me for everything, so go screw yourself.
Unlike you I don't have the luxury of sitting around unemployed because you won't take jobs that are "beneath you." Nobody feels sorry for me or supports me, so I work for a living instead of whining on the internet. I pay that same tax because I'm also single, it's not some White man tax as you're trying to pretend it is.
Maybe the reason nobody wants to hire you is because you are openly racist and can't take accountability for anything. Most people are struggling now, yet actual statistics show the biggest hits were to Black males. I work with mostly white people, it's just you who doesn't have a job.
Family status isn't even a legally allowable question. There is no way any employer knows your personal situation unless you are volunteering it. Stop whining and stop being stupid an volunteering pointless information.
well you said it exactly like it is now cory seems to be crying about it because the truth hurts.