On Monday, the former chair of the Federal Deposit Insurance Corporation, Sheila Bair, who served under President Obama’s administration from January 2009 until June 2011, ripped into the so-called Obama recovery. Citing a chart from the Sentier Research Group, she wrote, “for a large number of American households, there has been no economic recovery.”
Caught in a vice of chronic unemployment and falling wages, real median household income (excluding capital gains and losses but including cash government benefits) has declined 4.4% since the “recovery” began in 2009. For many households, the drop has been more severe. For African-American households, it is 10.9%. For those under 25 years old, it is 9.6%. For single females with children, it is 7.5%. Indeed, the only households to experience an increase in real income are those 65 to 74 years old.
Bair also bashed the stock market recovery, stating that its “bubbly 25% gain in 2013” came “courtesy of quantitative easing.” And she said that she mourned the plight of those “Americans who work for a living.”